Evercore Raises Alphabet Inc.'s (NASDAQ:GOOGL) Price Target
Research Firm Says Pandemic Had Limited Impact on the Company
Evercore ISI has raised its price target on Alphabet Inc. (NASDAQ:GOOGL) to $3,200 from $2,900. Analyst Mark Mahaney said that the pandemic had a limited impact on the company's core advertising business and that it was well-positioned to benefit from the ongoing digital transformation of the economy.
Key Points:
* Evercore raises price target on Alphabet Inc. (NASDAQ:GOOGL) to $3,200. * Analyst says pandemic had limited impact on the company's core advertising business. * Alphabet is well-positioned to benefit from digital transformation.Mahaney said that Alphabet's advertising business, which accounts for the majority of its revenue, has been resilient during the pandemic. He noted that the company's search and YouTube businesses have continued to grow, even as other forms of advertising have declined. Mahaney also said that Alphabet's cloud computing business, Google Cloud, is growing rapidly and is expected to become a major source of revenue in the future.
"We believe that Alphabet is well-positioned to benefit from the ongoing digital transformation of the economy," Mahaney wrote in a research note. "The company's core advertising business is resilient and its cloud computing business is growing rapidly." Evercore's price target of $3,200 implies a potential upside of about 10% from Alphabet's current share price of $2,900.
