The legal cloud over Google has lifted,and analysts are increasingly optimistic about the tech giant’s prospects.

After a nearly five-year antitrust battle initiated by the Department of Justice,a district judge ruled on Tuesday that Google would not be forced to sell off its Chrome or YouTube divisions.

Rather, the ruling by District judge Amit Mehta stipulated that Google will be subject to certain behavioral restrictions, but avoids a structural breakup.

Wedbush’s Positive Outlook on Google

Alphabet, Google’s parent company, closed at $212 on Tuesday.

“The outcome is broadly favorable for Google,in our view,with the court ruling against the most severe remedy proposals introduced by the DOJ.”

Analysts at wedbush, in a note titled “Government Folds Like Cheap Suit,” outlined several reasons for their bullish stance on Google, suggesting the stock is undervalued compared to peers like Meta.

According to the Wedbush analysts led by scott Devitt, the ruling eliminates significant downside risks for the company. They also believe the competitive threat from generative AI rivals like OpenAI and Perplexity is diminishing. Moreover, they see Google’s leadership successfully positioning the company as a leader in the AI sector, noting strong demand and accelerating growth in its Cloud business.

Wedbush raised its stock price target from $225 to $245 on Tuesday.

Google’s stock has risen 11.3% year to date.