Alphabet (GOOGL) Upgraded to Buy by Zacks Investment Research

Alphabet (NASDAQ:GOOGL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Friday. The brokerage presently has a $1,208.00 price target on the information services provider’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 13.96% from the company’s previous close.

According to Zacks, “Alphabet's strengthening cloud unit is aiding substantial revenue growth. Moreover, the growing momentum of Google Cloud and expanding data centers will continue to bolster the company’s presence in the cloud space. Also, major updates in its search segment are enhancing the search results which is a tailwind. Additionally, Google’s strong focus on the innovation of its AI techniques and Android OS along with growing presence in the home automation space are driving its top-line growth further. Notably, the stock has outperformed the industry it belongs to in the past one year. However, the company’s growing litigation issues might hurt its profitability. Also, it's increased spending on consumer gadgets, YouTube video app and cloud computing services remain concerns. Also, rising competition in the online ad market.”

Several other research firms also recently issued reports on GOOGL. Wedbush initiated coverage on shares of Alphabet in a report on Wednesday, October 17th. They set an “outperform” rating and a $1,350.00 price objective on the stock. Jefferies Financial Group set a $1,200.00 price objective on shares of Alphabet and gave the stock a “buy” rating in a report on Thursday, December 20th. Morgan Stanley restated an “overweight” rating and set a $1,500.00 price objective (down previously from $1,515.00) on shares of Alphabet in a report on Wednesday, November 14th. Nomura restated a “buy” rating and set a $1,400.00 price objective on shares of Alphabet in a report on Tuesday, December 4th. Finally, Pivotal Research dropped their price objective on shares of Alphabet from $1,080.00 to $1,010.00 and set a “hold” rating on the stock in a report on Friday, October 12th. Three research analysts have rated the stock with a hold rating and thirty have assigned a buy rating to the stock. Alphabet has an average rating of “Buy” and a consensus target price of $1,344.59.

Shares of NASDAQ:GOOGL traded down $18.79 during trading on Friday, reaching $1,060.04. 49,823 shares of the company traded hands, compared to its average volume of 1,993,371. The firm has a market capitalization of $752.70 billion, a P/E ratio of 33.10, a price-to-earnings-growth ratio of 1.26 and a beta of 1.00. Alphabet has a 1-year low of $977.66 and a 1-year high of $1,291.44. The company has a quick ratio of 4.10, a current ratio of 4.14 and a debt-to-equity ratio of 0.02.

Alphabet (NASDAQ:GOOGL) last released its quarterly earnings data on Thursday, October 25th. The information services provider reported $13.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $10.54 by $2.52. Alphabet had a net margin of 14.45% and a return on equity of 19.40%. The business had revenue of $27.16 billion during the quarter, compared to analyst estimates of $27.32 billion. Equities research analysts expect that Alphabet will post 45.32 earnings per share for the current fiscal year.

Hedge funds have recently made changes to their positions in the business. BlackRock Inc. increased its holdings in Alphabet by 0.7% in the 2nd quarter. BlackRock Inc. now owns 18,861,236 shares of the information services provider’s stock valued at $21,297,919,000 after buying an additional 128,040 shares during the period. FMR LLC grew its holdings in shares of Alphabet by 5.5% during the 3rd quarter. FMR LLC now owns 16,434,628 shares of the information services provider’s stock valued at $19,837,909,000 after purchasing an additional 858,589 shares during the last quarter. Northern Trust Corp grew its holdings in shares of Alphabet by 0.8% during the 2nd quarter. Northern Trust Corp now owns 3,677,525 shares of the information services provider’s stock valued at $4,152,625,000 after purchasing an additional 28,375 shares during the last quarter. Bank of New York Mellon Corp grew its holdings in shares of Alphabet by 118,334.5% during the 3rd quarter. Bank of New York Mellon Corp now owns 3,287,743 shares of the information services provider’s stock valued at $3,968,570,000 after purchasing an additional 3,284,967 shares during the last quarter. Finally, Jennison Associates LLC grew its holdings in shares of Alphabet by 10.4% during the 3rd quarter. Jennison Associates LLC now owns 1,922,845 shares of the information services provider’s stock valued at $2,321,028,000 after purchasing an additional 181,916 shares during the last quarter. Hedge funds and other institutional investors own 33.32% of the company’s stock.

About Alphabet

Alphabet Inc, through its subsidiaries, provides online advertising services in the United States and internationally. The company offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal Internet products, such as Ads, Android, Chrome, Commerce, Google Cloud, Google Maps, Google Play, Hardware, Search, and YouTube, as well as technical infrastructure and newer efforts, including Virtual Reality.

Further Reading: What are retained earnings?

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