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Baird Adds Alphabet To Focus List, Believes Cloud Asset Is Underappreciated

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Baird Adds Alphabet To Focus List, Believes Cloud Asset Is Underappreciated

Colin Sebastian added Alphabet Inc (NASDAQ: GOOG) to Baird's focus list, maintaining the company's Outperform rating and $860 price target.

Sebastian believed Alphabet's expectations were "more achievable relative to mega-cap peers" such as Facebook (NASDAQ: FB) and Amazon (NASDAQ: AMZN).

Further notable catalysts were:

  • Continued revenue outperformance "as comps toughen in 2H16"
  • "Better optics around Cloud growth trajectory/momentum"
  • Increasing Mobile monetization opportunities from recent tweaks to ad formats
  • "CEO Ruth Porat may be exiting her honeymoon period [which] could provide a better set-up for the balance of the year."

Finally, Sebastian highlighted Alphabet's under-appreciated cloud asset. "Google operates the largest cloud infrastructure by a large margin, and engages in more technology infrastructure R&D… than any other company," said the analyst. Enterprise customers already include 60 percent of Fortune 500 companies among "2 million [of its[ paying enterprise users."

Latest Ratings for GOOG

DateFirmActionFromTo
May 2019MaintainsBuy
Feb 2019MaintainsOverweightOverweight
Feb 2019MaintainsBuyBuy

View More Analyst Ratings for GOOG
View the Latest Analyst Ratings

Posted-In: Baird Colin SebastianAnalyst Color Analyst Ratings Tech Best of Benzinga

 

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