Alphabet (GOOG) Weakness Seen as Opportunity to Add to Positions - Deutsche Bank
Deutsche Bank maintained a Buy rating on Alphabet (NASDAQ: GOOG) and raised its price target to $1,100.00 (from $1,080.00). Analyst Ross Sandler described its Q1 results as a "messy print" but he believes the overalls story and underlying trends remain solid. In his view, investors should add to positions on weakness.
"Google reported an “in-line revenue and EPS miss” print plagued by a number of moving pieces. However, Sites growth (the most important line) was +26% Y/Y in-line with Consensus and a slight deceleration and margins are improving. The US revenue decline of 9% Q/Q was somewhat alarming, likely exacerbated by the AOL loss. Our thesis heading into 1Q earnings for the group was that 4Q’s acceleration was an anomaly (budget flush, ad load, accentuated seasonality) that wouldn’t be repeated, and that growth rates would revert lower, and that’s what we see with Google. With 20%+ organic growth and a 20x P/E, we would add to positions on weakness today," said Sandler.
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Shares of Alphabet closed at $759.14 yesterday.