Alphabet (GOOGL, GOOG) received a favorable court ruling allowing it to retain control of its Chrome browser, a decision that has "strengthened" its position in generative artificial intelligence and reduced near-term regulatory risk to its core business, Tigress Financial Partners said in a Friday note.

On Tuesday, US District Judge Amit Mehta said that the tech giant does not have to divest its Chrome web browser, but will be barred from exclusive contracts related to the distribution of Google Search, Chrome, Google Assistant, and the Gemini app.

The brokerage said Alphabet's ability to integrate advanced AI functionality across core product lines furthers the company's digital advertising business and market share gains.

The company's strong balance sheet and cash flows enable continued investment in AI infrastructure, acquisitions, and shareholder returns, according to the firm.

Tigress reiterated a strong buy rating on Alphabet and raised its price target on its class A shares to $280 from $240.

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