Rosenblatt initiates Alphabet stock coverage with buy rating on cloud
Rosenblatt has begun covering Alphabet Inc. (NASDAQ:GOOGL) with a buy rating and a price target of $410. This suggests potential upside from the current price of $344.72. Although InvestingPro data shows the stock is slightly overvalued relative to its Fair Value, Alphabet remains a leading hyperscaler in the artificial intelligence cycle.
The company exhibits strong financial metrics, with a low PEG ratio of 0.15 and revenue growth of 20%. The analysts believe cloud services will continue to drive growth and multiple expansion as operating profits scale beyond current expectations, particularly with the monetization of Tensor Processing Units (TPUs) after 2027. They assert that a slowdown in cloud growth would have a more significant impact on the thesis than any potential search engine concerns.
For a comprehensive analysis, investors can consult the Pro Research Report, exclusively available on InvestingPro, alongside analysis of over 1,400 other US equities.
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