JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Thursday, Truist Securities revised its price target for Alphabet stock (NASDAQ:GOOGL), lowering it to $200 from the previous $220, while sustaining a Buy rating. Currently trading at $150.29, the stock appears undervalued according to InvestingPro Fair Value analysis. The adjustment comes as the firm anticipates the impact of new tariffs, particularly on China and Canada, to dampen growth in critical sectors such as Retail, Automotive, and Pharmaceuticals.
Truist Securities anticipates Alphabet’s first-quarter results for 2025, which are due to be released on April 29, to align with both the firm’s and the broader market consensus. With revenue growth of 13.87% over the last twelve months and a healthy P/E ratio of 19.1x, the expected performance is driven by robust user engagement on Alphabet’s Search and YouTube platforms, alongside steady growth in the Cloud segment.
The analyst from Truist Securities noted that while concerns about the evolution of Artificial Intelligence in search functions, along with regulatory pressures, have affected Alphabet’s stock, the current market valuation is believed to already account for these factors. With an exceptional financial health score rated as "GREAT" by InvestingPro and minimal debt-to-equity ratio of 0.09, the analyst expressed confidence in Alphabet’s ability to lead in the AI Search domain despite these challenges.
In the statement provided, the analyst explained the rationale behind the price target reduction, citing the influence of tariffs and macroeconomic factors on the company’s financial projections for the second quarter and the full year of 2025. The new price target reflects these revised estimates.
Investors will be closely monitoring the upcoming earnings report to gauge Alphabet’s performance against the backdrop of these revised expectations. The report is poised to offer insights into the company’s ability to navigate the tariff-induced challenges and sustain its growth trajectory in its key business segments.
In other recent news, Google has released its 2024 Ads Safety Report, showcasing the use of artificial intelligence to combat fraudulent ads, resulting in the prevention of billions of policy-violating ads. This initiative led to the permanent suspension of over 700,000 advertiser accounts, significantly reducing scam ad reports by 90% in 2024. Meanwhile, Google is facing a class action lawsuit in the U.K. alleging antitrust violations, which could potentially lead to damages exceeding $6.6 billion. This legal challenge adds to the global scrutiny Google faces regarding its business practices. Cantor Fitzgerald has downgraded Google’s stock price target from $200 to $159, maintaining a Neutral rating, citing expectations of slower revenue growth in Search and YouTube. The analyst also anticipates a deceleration in revenue growth for Google’s Cloud services. Additionally, Google has introduced new video creation features in its platforms Gemini and Whisk using Veo 2, allowing users to generate high-resolution videos. These developments are part of Google’s broader efforts to enhance its AI capabilities while navigating legal and market challenges.
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