Judge Amit Mehta Rejects DOJ Demand to Force Chrome Sale; Alphabet Jumps 6% as Banks Lift Targets to $250-$260

Judge Amit Mehta handed Alphabet (NASDAQ: GOOG) a clear win on Tuesday: the court rejected the Department of Justice's push to force a sale of Chrome and declined to include a contingent breakup of Android in the final judgment. The ruling does, however, restrict certain exclusive contracts and bans arrangements that condition payments or licensing on exclusivity.

Markets liked the outcome. Alphabet shares jumped about 6% in the premarket trade and are roughly 11% higher year-to-date. Wall Street's sell-side mostly treated the decision as a removal of a major overhang, and a number of firms responded by raising price targets while generally keeping buy-equivalent stances.

Here's how some of the big desks weighed in.

Barclays (LON: BARC) bumped its target to $250 from $235, arguing the remedy package was friendlier than feared. Barclays says the elimination of a forced Chrome divestiture and the limits on TAC-style payments look unlikely to meaningfully dent market share, revenue or EPS.

Bank of America (NYSE: BAC) lifted its target to $252 (from $217). Its take: keeping Google's ability to pay partners for distribution preserves its search footprint, and that should keep most partners aligned rather than pushing them to build independent search stacks.

JPMorgan (NYSE: JPM) moved its target up to $260 from $232. The bank highlighted that the remedies were less punitive than feared and noted the judge factored in a more competitive search market - partly driven by GenAI developments - when fashioning the relief.

Deutsche Bank (NYSE: DB) also raised its target to $260 (previously $215), saying the decision reduces the chance of structural disruption to search and allows clearer visibility into Alphabet's long-term fundamentals. Deutsche Bank lowered its regulatory discount and increased the multiple it's willing to apply to 2026 GAAP EPS.

Morgan Stanley (NYSE: MS) characterized the remedies - around TACs and data syndication - as largely benign and unlikely to unseat Google's lead position, noting that product execution and commercial behavior will matter more going forward.

Goldman Sachs (NYSE: GS) took a more measured tone. The desk said the full financial impact won't be obvious for years, so multiples may stay capped for a while, but it acknowledged that some of the recent overhang has been removed and reaffirmed a constructive view of Alphabet's strategic tech positioning.

Citi (NYSE: C) called the ruling broadly in line with expectations, noted it removes a key cloud on the stock, and reiterated its buy-equivalent rating - while reminding readers that Alphabet is likely to appeal and that the appeals process could take years.

Evercore (NYSE: EVR) summed it up bluntly: this is about as good as the company could have hoped for on remedies, and it left Alphabet at the top of its list.

Some boutique shops were more granular. One noted the hit to EPS from the remedies could be in the mid-single-digit percentage range over time, assuming some market share erosion as partners reassess deals, but they expect little near-term pressure under current conditions.

Two other practical points analysts flagged: first, the ruling still changes certain commercial terms and will require new contracting behavior; second, the competitive picture for search is evolving fast - GenAI and new rivals are already changing partner economics. The legal fight isn't over either: an appeal is likely, which could keep the matter alive in the courts for years.

So the headline: no forced sale of Chrome, no contingent Android breakup, limited-but meaningful-restrictions on exclusivity and TAC-like arrangements. The immediate market reaction was positive, and the street largely reassessed upwards, at least on near-term valuation assumptions. Shares climbed on the news. End of story? Not yet - the case will likely continue through appeals even as analysts sort through the commercial implications.