The Analyst Verdict: Alphabet In The Eyes Of 4 Experts

In the last three months, 4 analysts have published ratings on Alphabet GOOG, offering a diverse range of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $215.0, a high estimate of $240.00, and a low estimate of $185.00. Surpassing the previous average price target of $209.67, the current average has increased by 2.54%.

Diving into Analyst Ratings: An In-Depth Exploration

A clear picture of Alphabet's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below 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 | |--------------------|--------------------|---------------|-----------------|--------------------|--------------------| |Justin Patterson |Keybanc |Lowers |Overweight | $185.00|$202.00 | |Curtis Shauger |WestPark Capital |Announces |Buy | $210.00|- | |Jason Helfstein |Oppenheimer |Raises |Outperform | $225.00|$215.00 | |Nat Schindler |Scotiabank |Raises |Sector Outperform| $240.00|$212.00 |

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Alphabet. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Alphabet compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Alphabet's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Alphabet's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Alphabet analyst ratings.

All You Need to Know About Alphabet

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.

Alphabet's Financial Performance

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Alphabet's remarkable performance in 3M is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 11.77%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.

Net Margin: Alphabet's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 27.51%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Alphabet's ROE stands out, surpassing industry averages. With an impressive ROE of 8.3%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 6.03%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.08.

The Core of Analyst Ratings: What Every Investor Should Know

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.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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