Google (GOOGL) (GOOG) Alphabet Re-Org 'Positive', BMO Capital Says

BMO Capital analyst Daniel Salmon reiterated an Outperform rating and $770 price target on Google (NASDAQ: GOOGL) (NASDAQ: GOOG) after the company announced a new operational structure that will see the core internet services (search, ads, maps, apps, YouTube, Android, etc.) remain within a subsidiary called Google. New ventures like Nest, Fiber, X Lab, Wing (drone delivery), Calico (longevity), Life Sciences, and the two venture arms (Ventures and Capital) will be housed in a separate subsidiary.

Salmon is positive on the news. "The only complaint we heard from investors regarding last quarter’s earnings call was the lack of increased transparency into the business," Salmon commented. "Breaking out YouTube was a popular request and while Alphabet won’t do that, the move has certainly addressed the broader interest in better understanding the different components of Google, particularly the impact of the company’s “moonshots”. "

The analyst said the appointment of Sundar Pichai as the CEO of the core Google properties represents a seamless and unsurprising transition.

For an analyst ratings summary and ratings history on Google click here. For more ratings news on Google click here.

Shares of Google closed at $633.73 yesterday.

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