Breaking Down Alphabet: 26 Analysts Share Their Views

Providing a diverse range of perspectives from bullish to bearish, 26 analysts have published ratings on Alphabet GOOGL in the last three months.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $196.69, with a high estimate of $229.00 and a low estimate of $159.00. Experiencing a 7.19% decline, the current average is now lower than the previous average price target of $211.92.

Exploring Analyst Ratings: An In-Depth Overview

A comprehensive examination of how financial experts perceive Alphabet is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Ken Gawrelski |Wells Fargo |Raises |Equal-Weight | $175.00|$167.00 | |Barton Crockett |Rosenblatt |Lowers |Neutral | $189.00|$205.00 | |Mark Kelley |Stifel |Lowers |Buy | $192.00|$225.00 | |Brad Erickson |RBC Capital |Maintains |Outperform | $200.00|$200.00 | |Brian Nowak |Morgan Stanley |Lowers |Overweight | $185.00|$210.00 | |Brian Pitz |BMO Capital |Lowers |Outperform | $200.00|$230.00 | |Youssef Squali |Truist Securities |Lowers |Buy | $200.00|$220.00 | |Deepak Mathivanan |Cantor Fitzgerald |Lowers |Neutral | $159.00|$200.00 | |Laura Martin |Needham |Maintains |Buy | $178.00|$178.00 | |Gil Luria |DA Davidson |Lowers |Neutral | $160.00|$200.00 | |Ronald Josey |Citigroup |Lowers |Buy | $195.00|$229.00 | |Thomas Champion |Piper Sandler |Lowers |Overweight | $185.00|$208.00 | |James Lee |Mizuho |Lowers |Outperform | $205.00|$230.00 | |Doug Anmuth |JP Morgan |Lowers |Overweight | $180.00|$220.00 | |Ken Gawrelski |Wells Fargo |Lowers |Equal-Weight | $167.00|$184.00 | |Brent Thill |Jefferies |Lowers |Buy | $200.00|$235.00 | |Deepak Mathivanan |Cantor Fitzgerald |Maintains |Neutral | $200.00|$200.00 | |Rohit Kulkarni |Roth MKM |Maintains |Buy | $220.00|$220.00 | |Barton Crockett |Rosenblatt |Maintains |Neutral | $205.00|$205.00 | |Justin Patterson |Keybanc |Lowers |Overweight | $202.00|$220.00 | |Thomas Champion |Piper Sandler |Lowers |Overweight | $208.00|$210.00 | |Doug Anmuth |JP Morgan |Lowers |Overweight | $220.00|$232.00 | |Ronald Josey |Citigroup |Lowers |Buy | $229.00|$232.00 | |Brian Nowak |Morgan Stanley |Lowers |Overweight | $210.00|$215.00 | |Laura Martin |Needham |Maintains |Buy | $225.00|$225.00 | |Laura Martin |Needham |Raises |Buy | $225.00|$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 assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Alphabet compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Alphabet's stock. This examination reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Alphabet's market standing. Stay informed and make well-considered 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.

Financial Milestones: Alphabet's Journey

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Positive Revenue Trend: Examining Alphabet's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 11.77% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Communication Services sector.

Net Margin: Alphabet's net margin is impressive, surpassing industry averages. With a net margin of 27.51%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Alphabet's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 8.3%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Alphabet's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 6.03%, the company showcases efficient use of assets and strong financial health.

Debt Management: Alphabet's debt-to-equity ratio is below the industry average at 0.08, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: Simplified

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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