What 20 Analyst Ratings Have To Say About Alphabet
Analysts' ratings for Alphabet (GOOGL) show a mix of bullish and bearish sentiments over the last quarter, with 20 analysts providing insights. The average 12-month price target is $208.05, down 2.09% from previous estimates. Key analysts have lowered their ratings and price targets, reflecting a negative shift in sentiment. Alphabet's financials indicate strong performance, with a market capitalization above industry average, a revenue growth rate of 11.77%, and a net margin of 27.51%. The company maintains a prudent debt management strategy with a low debt-to-equity ratio of 0.08.
Analysts' ratings for Alphabet GOOGL over the last quarter vary from bullish to bearish, as provided by 20 analysts.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 6 | 8 | 6 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 2 | 2 | 3 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 4 | 5 | 3 | 0 | 0 |
Analysts have recently evaluated Alphabet and provided 12-month price targets. The average target is $208.05, accompanied by a high estimate of $229.00 and a low estimate of $167.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 2.09%.
Understanding Analyst Ratings: A Comprehensive Breakdown
The standing of Alphabet among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target || -------------------- | -------------------- | --------------- | --------------- | -------------------- | -------------------- ||James Lee |Mizuho |Lowers |Outperform | $205.00|$230.00 ||Doug Anmuth |JP Morgan |Lowers |Overweight | $180.00|$220.00 ||Ken Gawrelski |Wells Fargo |Lowers |Equal-Weight | $167.00|$184.00 ||Brent Thill |Jefferies |Lowers |Buy | $200.00|$235.00 ||Deepak Mathivanan |Cantor Fitzgerald |Maintains |Neutral | $200.00|$200.00 ||Rohit Kulkarni |Roth MKM |Maintains |Buy | $220.00|$220.00 ||Barton Crockett |Rosenblatt |Maintains |Neutral | $205.00|$205.00 ||Justin Patterson |Keybanc |Lowers |Overweight | $202.00|$220.00 ||Thomas Champion |Piper Sandler |Lowers |Overweight | $208.00|$210.00 ||Doug Anmuth |JP Morgan |Lowers |Overweight | $220.00|$232.00 ||Ronald Josey |Citigroup |Lowers |Buy | $229.00|$232.00 ||Brian Nowak |Morgan Stanley |Lowers |Overweight | $210.00|$215.00 ||Laura Martin |Needham |Maintains |Buy | $225.00|$225.00 ||Laura Martin |Needham |Raises |Buy | $225.00|$210.00 ||Gil Luria |DA Davidson |Raises |Neutral | $200.00|$190.00 ||Deepak Mathivanan |Cantor Fitzgerald |Lowers |Neutral | $210.00|$215.00 ||Brian Nowak |Morgan Stanley |Raises |Overweight | $215.00|$205.00 ||Mark Kelley |Stifel |Raises |Buy | $225.00|$200.00 ||Ken Gawrelski |Wells Fargo |Raises |Equal-Weight | $190.00|$187.00 ||Justin Patterson |Keybanc |Raises |Overweight | $225.00|$215.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Alphabet. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Alphabet compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Alphabet's stock. This comparison reveals trends in analysts' expectations over time.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Alphabet's market position. Stay informed and make well-informed decisions with our Ratings Table.
Stay up to date on Alphabet analyst ratings.
Unveiling the Story Behind Alphabet
Alphabet is a holding company that wholly owns internet giant Google. The California-based company derives slightly less than 90% of its revenue from Google services, the vast majority of which is advertising sales. Alongside online ads, Google services houses sales stemming from Google's subscription services (YouTube TV, YouTube Music among others), platforms (sales and in-app purchases on Play Store), and devices (Chromebooks, Pixel smartphones, and smart home products such as Chromecast). Google's cloud computing platform, or GCP, accounts for roughly 10% of Alphabet's revenue with the firm's investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) making up the rest.
Financial Insights: Alphabet
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Positive Revenue Trend: Examining Alphabet's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 11.77% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Communication Services sector.
Net Margin: Alphabet's net margin excels beyond industry benchmarks, reaching 27.51%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Alphabet's ROE excels beyond industry benchmarks, reaching 8.3%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Alphabet's ROA stands out, surpassing industry averages. With an impressive ROA of 6.03%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: With a below-average debt-to-equity ratio of 0.08, Alphabet adopts a prudent financial strategy, indicating a balanced approach to debt management.
What Are Analyst Ratings?
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.