Google (GOOG) (GOOGL) PT Raised to $900 at Rosenblatt
Rosenblatt analyst Martin Pyykkonen reiterated a Buy rating and boosted his price target on Google (NASDAQ: GOOGL) (NASDAQ: GOOG) to $900.00 (from $825.00).
Pyykkonen commented, "We are reiterating our Buy rating and raising our price target from $825 to $900 on Alphabet, based on a ~14x EV/EBITDA multiple on our 2016 full year adjusted EBITDA estimate of $37.9B (or ~26x our non-GAAP EPS estimate of $34.53 this year). Alphabet is still attractively valued with ~17% upside to our new price target, especially in light of several accelerating growth factors in the company’s 4Q15 results (total revenue, paid search click volume, EBITDA and EPS)."
He added, "Alphabet’s 4Q15 results included several points of accelerating performance, with the overall primary driver coming from mobile search traffic and monetization. Even though CQ4 is the seasonally strongest quarter, 4Q15 performance was still an acceleration vs. 4Q14. There were several key highlights in Alphabet’s 4Q15 performance;
- Total revenue accelerated to 18% growth (up 24% ex-fx negative impact)
- Paid click search volume accelerated to up 31% y/y (vs. up 23% last quarter)
- Core search business EBITDA profitability visibly higher than total margin
- Google segment EBITDA ~44% margin (vs. ~40% corporate average)
- Increasing YouTube ad growth from traditional media budget shifts
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 $752.00 yesterday.