Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - KeyBanc Capital Markets has raised its price target on Alphabet (NASDAQ:GOOGL) stock to $300.00 from $265.00 while maintaining an Overweight rating on the shares. The stock, currently trading at $259.92 with a market capitalization of $3.15 trillion, is currently trading above InvestingPro’s Fair Value estimate.
The investment firm cited expectations that Alphabet’s third-quarter results, scheduled for October 29, will demonstrate that faster product velocity is driving momentum across the company’s Search, Cloud, and Waymo businesses. InvestingPro analysis shows the company maintains a "GREAT" financial health score of 3.38, with 15+ additional insights available to subscribers.
KeyBanc noted that Alphabet’s valuation "does not appear demanding," with shares trading at approximately a 1.5x next-twelve-months price-to-earnings premium compared to the S&P 500 (24.5x versus 23.0x).
The firm projects that a combination of 12-13% annual revenue growth, operating leverage, and share repurchases should fuel approximately 17% annual earnings per share growth from 2024 through 2027.
KeyBanc’s new $300 price target is based on 23 times the firm’s estimated 2027 price-to-earnings ratio for Alphabet.
In other recent news, Alphabet has been the focus of several significant developments. The company reported favorable outcomes in its antitrust case, prompting Stifel to raise its stock price target to $292, maintaining a Buy rating. Additionally, Bernstein adjusted its price target for Alphabet to $260, citing the company’s progress in AI development and resolving regulatory challenges. Alphabet is also advancing its autonomous vehicle technology through Waymo, which is set to begin testing vehicles at Newark airport as part of a future passenger service initiative.
In partnership news, Google announced that Planet Labs is utilizing Google’s Earth AI models to analyze satellite data, aiding in mapping deforestation. This collaboration is part of Google’s broader strategy to enhance its Earth AI capabilities. Furthermore, Google has agreed to a potential investment in THG Ingenuity, valuing the e-commerce arm at approximately $1.01 billion. These recent developments highlight Alphabet’s strategic moves in technology and investment, reflecting ongoing growth and innovation.
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