Market Overview

Mizuho Raises Google's Price Target On Positive Ad Trajectory

Mizuho Raises Google's Price Target On Positive Ad Trajectory

A recent call with a leading advertising agency indicates a monthly recovery for Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) in the second quarter and a positive trajectory of ad revenues ahead, according to Mizuho Securities.

The Google Analyst: James Lee maintained a Buy rating on Alphabet, while raising the price target from $1,650 to $1,750.

The Google Thesis: Although the agency’s data suggested Google’s U.S. search ad revenue growth had decelerated from 11.4% last quarter to 8.6% in the second quarter, the company made a good recovery from 4% in March to 9% in April and 11% in May, Lee said in the note.

This recovery is attributed to rising demand for consumer packaged goods, checks for the government’s stimulus plans and consumers stocking up in certain product categories.

Google’s clicks growth spiked from 9% in the first quarter to 39% in the second quarter, Lee mentioned. He said the agency attributed this strength to users spending more time on Google amid lockdowns and people working from home.

Despite a significant pickup in impressions and clicks, cost-per-click declined by 22% versus 2% growth in the prior quarter.

Lee sees a positive trajectory into the back half of the year and for Google website revenues to grow by 4% to $171 billion by fiscal 2022. Referring to the long-term thesis, he wrote that Google remains “a positive structural story on penetrating TV advertising, improved monetization for Maps and newly introduced Discover ads, and cloud opportunities.”

GOOGL Price Action: Shares of Alphabet traded around $1,565 at the time of publication Tuesday.

Related Links:

TikTok Ban Speculation Is Good News For Facebook, Google

10 Biggest Price Target Changes For Tuesday

Latest Ratings for GOOG

Aug 2020UBSMaintainsBuy
Jul 2020Raymond JamesMaintainsOutperform
Jul 2020Deutsche BankMaintainsBuy

View More Analyst Ratings for GOOG
View the Latest Analyst Ratings


Related Articles (GOOG + GOOGL)

View Comments and Join the Discussion!

Posted-In: James Lee Mizuho SecuritiesAnalyst Color Price Target Reiteration Analyst Ratings

Latest Ratings

INTCJP MorganMaintains70.0
STMCanaccord GenuityMaintains47.0
ELDeutsche BankMaintains248.0
UAADeutsche BankMaintains13.0
INTCDeutsche BankMaintains55.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at