Alphabet ‘At The Forefront Of The AI Race’: Analysts See Attractive Valuation; Highlight Cloud, YouTube, Search Results
Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) is viewed favorably by analysts after showing strength in cloud, search and YouTube segments and spending on AI initiatives paying off, after the company reported third-quarter financial results Tuesday.
The Alphabet Analysts: BMO Capital analyst Brian Pitz reiterated an Outperform rating on Alphabet and raised the price target from $215 to $217.
KeyBanc Capital Markets analyst Justin Patterson maintained an Overweight rating and raised the price target from $200 to $215.
Cantor Fitzgerald analyst Deepak Mathivanan reiterated a Neutral rating with a $190 price target.
JMP Securities analyst Andrew Boone reiterated a Market Outperform rating and raised the price target from $200 to $220.
Seaport Research analyst Aaron Kessler upgraded the stock from Neutral to Buy and established a $200 price target.
Needham analyst Laura Martin maintained a Buy rating with a $210 price target.
Goldman Sachs analyst Eric Sheridan maintained a Buy rating and raised the price target from $208 to $210.
Truist analyst Youssef Squali maintained a Buy rating and raised the price target from $220 to $225.
Morgan Stanley analyst Brian Nowak maintained an Overweight rating and raised the price target from $190 to $205.
Oppenheimer analyst Jason Helfstein maintained an Outperform rating and raised the price target from $185 to $215.
Roth MKM analyst Rohit Kulkarni maintained a Buy rating with a $212 price target.
Piper Sandler analyst Thomas Champion reiterated an Overweight rating and raised the price target from $200 to $210.
BMO Capital on GOOGL: Surging cloud growth is a key storyline for Alphabet, Pitz said in a new investor note.
The analyst also highlighted artificial intelligence use cases for Alphabet.
“Cloud revenue accelerated once again on AI workloads and differentiated security offerings,” Pitz said.
Pitz said the company’s search outlook improves thanks to AI initiatives like AI Overviews, Circle to Search and Lens.
“Google has 20+ years of AI initiatives that are now being rolled out to its enterprise and SMB clients.”
KeyBanc on GOOGL: Alphabet reported solid search and cloud growth in the quarter, Patterson said in a new investor note.
“In our view, Alphabet remains a case of the narrative vs. numbers,” Patterson said.
The analyst said there are concerns over the AI risk and regulation, but long-term revenue growth remains in place.
“Believe patient shareholders will be rewarded.”
Cantor on GOOGL: Solid third-quarter figures might not be enough to shift narratives of …
Full story available on Benzinga.com