Expert Outlook: Alphabet Through The Eyes Of 28 Analysts

Alphabet GOOGL has been analyzed by 28 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 8 13 7 0 0
Last 30D 0 0 1 0 0
1M Ago 2 4 2 0 0
2M Ago 1 2 0 0 0
3M Ago 5 7 4 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $210.82, a high estimate of $232.00, and a low estimate of $185.00. This upward trend is evident, with the current average reflecting a 3.62% increase from the previous average price target of $203.46.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive Alphabet. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Deepak Mathivanan Cantor Fitzgerald Lowers Neutral $210.00 $215.00
Brian Nowak Morgan Stanley Raises Overweight $215.00 $205.00
Mark Kelley Stifel Raises Buy $225.00 $200.00
Ken Gawrelski Wells Fargo Raises Equal-Weight $190.00 $187.00
Justin Patterson Keybanc Raises Overweight $225.00 $215.00
Scott Devitt Wedbush Raises Outperform $220.00 $210.00
Shweta Khajuria Wolfe Research Raises Outperform $230.00 $220.00
Andrew Boone JMP Securities Maintains Market Perform $220.00 $220.00
Justin Post B of A Securities Maintains Buy $210.00 $210.00
Doug Anmuth JP Morgan Raises Overweight $232.00 $212.00
Eric Sheridan Goldman Sachs Maintains Buy $210.00 $210.00
Colin Sebastian Baird Maintains Outperform $205.00 $205.00
Alan Gould Loop Capital Raises Hold $185.00 $170.00
Michael Levine Pivotal Research Raises Buy $225.00 $215.00
Mark Shmulik Bernstein Raises Market Perform $185.00 $180.00
Andrew Boone JMP Securities Raises Market Outperform $220.00 $200.00
Deepak Mathivanan Cantor Fitzgerald Maintains Neutral $190.00 $190.00
Rohit Kulkarni Roth MKM Raises Buy $212.00 $206.00
Justin Patterson Keybanc Raises Overweight $215.00 $200.00
Thomas Champion Piper Sandler Raises Overweight $210.00 $200.00
Brad Erickson RBC Capital Raises Outperform $210.00 $204.00
Youssef Squali Truist Securities Raises Buy $225.00 $220.00
Ken Gawrelski Wells Fargo Raises Equal-Weight $187.00 $182.00
Mark Mahaney Evercore ISI Group Raises Outperform $205.00 $200.00
Brian Pitz BMO Capital Raises Outperform $217.00 $215.00
Brian Nowak Morgan Stanley Raises Overweight $205.00 $190.00
Justin Post B of A Securities Raises Buy $210.00 $206.00
Laura Martin Needham Maintains Buy $210.00 $210.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Alphabet. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Alphabet compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Alphabet's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Alphabet's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Alphabet analyst ratings.

Discovering Alphabet: A Closer Look

Alphabet is a holding company that wholly owns internet giant Google. The California-based company derives slightly less than 90% of its revenue from Google services, the vast majority of which is advertising sales. Alongside online ads, Google services houses sales stemming from Google's subscription services (YouTube TV, YouTube Music among others), platforms (sales and in-app purchases on Play Store), and devices (Chromebooks, Pixel smartphones, and smart home products such as Chromecast). Google's cloud computing platform, or GCP, accounts for roughly 10% of Alphabet's revenue with the firm's investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) making up the rest.

Unraveling the Financial Story of Alphabet

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Positive Revenue Trend: Examining Alphabet's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 15.09% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: Alphabet's net margin is impressive, surpassing industry averages. With a net margin of 29.8%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Alphabet's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.55% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Alphabet's ROA excels beyond industry benchmarks, reaching 6.22%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.09, Alphabet adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

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