Alphabet (Google): SG now targets 1,210 dollars.
(CercleFinance.com) - Maintaining its buy rating on Alphabet, the parent company of Google, Société Générale (SG) analysts have raised their 12-month target price on the A-share from 1,055 dollars to 1,210 dollars (+14.
7%).
Analysts calculate that in terms of free cash flow yield, the American Internet giant's shares are valued in the same way as those of other “best in class” media stocks, including the Dutch player RELX (formerly Reed Elsevier) and the French group JCDecaux. However, Alphabet seems to deserve better because of its better fundamentals, including its growing online market share, and a strong operating lever despite significant investments.
Another point highlighted is the hidden value of the Other Bets division, which at Alphabet groups together the "technology bets" which is now separated from the group's mature business, Google. SG highlights the continued improvement in Other Bets' financial discipline over the last few quarters.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
7%).
Analysts calculate that in terms of free cash flow yield, the American Internet giant's shares are valued in the same way as those of other “best in class” media stocks, including the Dutch player RELX (formerly Reed Elsevier) and the French group JCDecaux. However, Alphabet seems to deserve better because of its better fundamentals, including its growing online market share, and a strong operating lever despite significant investments.
Another point highlighted is the hidden value of the Other Bets division, which at Alphabet groups together the "technology bets" which is now separated from the group's mature business, Google. SG highlights the continued improvement in Other Bets' financial discipline over the last few quarters.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.