Alphabet, Inc. GOOGL GOOG is scheduled to release its quarterly results on Oct. 24, and consensus estimates call for nearly 37% year-over-year earnings per share growth and a more modest 10% revenue growth. Ahead of the earnings release, an analyst at KeyBanc Capital Markets raised his price target for the stock.
The Alphabet Analyst: Justin Patterson maintained an Overweight rating for Alphabet shares and raised the price target from $145 to $155, suggesting
The Alphabet Thesis: Alphabet will likely report a third-quarter beat, as Search trends appear to be healthy, said Patterson. Retail and travel verticals remained strong, the analyst said. He estimates Search revenue of $43.5 billion, 0.4% above Street estimates. This in turn will drive 2% higher earnings per share, he added.
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Patterson is also optimistic about the running quarter. He models 13% year-over-year overall revenue growth for the fourth quarter, thanks to Search strength and improving YouTube performance.
Investors are slightly bullish on Alphabet, the analyst said, premised on improving perception that it is an AI winner, competitive/regulatory concerns becoming more modest, the scope for margin stability, and Search business largely re-accelerating by year-end.
Alphabet Price Action: The Class-C shares of Alphabet fell 0.29% to $139.89, according to Benzinga Pro data.
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