Wedbush Raises Alphabet (GOOGL) PT to $840 Ahead of Q1 Print, Keeps Neutral Rating

Wedbush analyst, James Dix, raised estimates on Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and expects the stronger revenue to offset cost pressures when the company reports 1Q16 after the close on 4/21. The PT goes to $840 from $830 but the analyst keeps his Neutral rating.

Several potential positive emerging catalysts drive the increase:

1) mobile monetization improvements (such as through paid app placement ads and advances in deep linking), which are contributing to higher-than-estimated revenue growth in 2015

2) YouTube ad growth as a primary share video ad share gainer from TV

3) greater visibility on expenses (reflecting Alphabet reorganization)

The analyst assumes 1Q gross revenue up 18.3%, with Google Sites up 22%, Network Sites up 1%, and Licensing/Other up 32%, vs. 20%, 7% and 25%, respectively, in 4Q. The 1Q revenue growth estimate reflects ~3-pt f/x drag, vs. 6-pt drag in 4Q.

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

Shares of Alphabet closed at $751.72 yesterday.

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