Alphabet (GOOG) (GOOGL) PT Raised to $900 at JPMorgan
JPMorgan analyst Doug Anmuth reiterated an Overweight rating and boosted his price target on Alphabet (NASDAQ: GOOGL) to $900.00 (from $800.00) following results after the close. The analyst said the stock should re-rate on accelerating revenue growth.
Anmuth commented, "We believe the re-rating of Alphabet shares will continue following the 2nd straight quarter of operational outperformance and the company’s newfound willingness to return capital. Our bull case into 2016 has been that FXHN revenue growth would accelerate driven by mobile becoming the majority of paid clicks - with increasing prices—and YouTube strength, against a backdrop of increasing cost discipline & greater transparency. We think that thesis is now playing out earlier than expected, even before mobile becomes the majority of paid clicks, suggesting room for further acceleration in coming quarters. FXHN gross revenue accelerated from +18% Y/Y growth in 2Q15 to +21% Y/Y growth in 3Q15 driven primarily by mobile & YouTube. Revenue across each region—US, UK, & ROW—accelerated, w/18% FXHN growth in the UK the strongest in more than 2 years. Alphabet’s $5.1B share repurchase authorization—while small at ~1% of current market cap—suggests a shift in management and board philosophy around capital returns and should help attract a broader shareholder base. We reiterate our Overweight rating and are raising our PT to $900 (from $800) based on ~20x 2017E EPS of $44.65."
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Shares of Google closed at $681.14 yesterday.