Alphabet Analyst Bumps Up Price Target Ahead Of Q4 Results — But Flags Weakness In This Key Segment
Portfolio Pulse from Shanthi Rexaline
KeyBanc Capital Markets analyst Justin Patterson maintained an Overweight rating on Alphabet Inc. (GOOGL, GOOG) and increased the price target from $153 to $165, indicating an 8.42% upside potential. Patterson expects Alphabet to report solid Q4 revenue, with Google Search and YouTube offsetting a potential Cloud revenue miss. However, he anticipates an earnings miss due to a $700 million Google Pay settlement and higher NFL Sunday Ticket expenses. KeyBanc raised its revenue estimates slightly but lowered its earnings per share estimates for Q4 and 2023. Shares of Alphabet were mixed in recent trading.
January 29, 2024 | 5:32 pm
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POSITIVE IMPACT
Alphabet's GOOG stock mirrors the sentiment of GOOGL, with a raised price target from KeyBanc. The forecast includes solid Q4 revenue but warns of a Cloud segment underperformance and earnings hit from settlements and NFL deal.
Similar to GOOGL, the GOOG stock is expected to react positively to the raised price target. The concerns about Cloud revenue and legal costs are already factored into the analyst's expectations, which may limit negative impact.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Alphabet's GOOGL stock received a price target increase from KeyBanc, suggesting confidence in the company's performance despite potential Cloud revenue miss and earnings impact from legal settlements and NFL costs.
The price target increase by a prominent analyst suggests market confidence in Alphabet's overall performance, which could lead to positive investor sentiment. However, the potential Cloud revenue miss and anticipated earnings miss due to legal settlements and NFL costs could temper gains.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90