Alphabet (GOOG) (GOOGL) PT Raised Trimmed to $850 at SunTrust
SunTrust Robinson Humphrey analyst Bob Peck trimmed his price target on Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) to $850.00 (from $875.00) but maintained a Buy rating following Q1 results which showed in-line revenue but core profit miss.
Peck commented, "We think the bull/bear debate will center around the secular cost headwinds from mobile and programmatic TAC and the incremental core investments (content, hardware, and capex) vs. solid ex-FX topline results, the inherent leverage of the platform and incremental cash flows (Play, Cloud, etc.). Per CFO’s comments, we have modeled increasing TAC and adjusted Other Income, decreasing our 2017 EPS from $40.33 to $38.56. We are cautiously optimistic and maintain our Buy rating. Our PT goes to $850 (from $875) implying 22x PE (1.5x PEG) or ~20x Core EPS and 13.5x EV/EBITDA."
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Shares of Alphabet closed at $759.14 yesterday.