Alphabet: EU fine fairly small for Google, Susquehanna says.
(CercleFinance.com) - Susquehanna maintains its "positive" rating on Alphabet with a target price of 1,200 dollars after the European Commission fined Google unit 2.
7 billion dollars (2.4 billion euros).
The brokerage firm - which points out that the US company may appeal against the ruling - points out that failure to comply could result in a fine representing 5% of Alphabet's total revenue.
Although the fine seems fairly large, it's relatively small for Google, Susquehanna says.
"With around 92 billion dollars in gross cash on the balance sheet and free cash flow generation north of 25 billion dollars per year, the fine of 2.42 billion euros is relatively small at less than 3% of gross cash," it warns.
Susquehanna thinks that even the potential non-compliance fines of up to 4.5-5.5 billion dollars are "relatively minor" for a group like Alphabet.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
7 billion dollars (2.4 billion euros).
The brokerage firm - which points out that the US company may appeal against the ruling - points out that failure to comply could result in a fine representing 5% of Alphabet's total revenue.
Although the fine seems fairly large, it's relatively small for Google, Susquehanna says.
"With around 92 billion dollars in gross cash on the balance sheet and free cash flow generation north of 25 billion dollars per year, the fine of 2.42 billion euros is relatively small at less than 3% of gross cash," it warns.
Susquehanna thinks that even the potential non-compliance fines of up to 4.5-5.5 billion dollars are "relatively minor" for a group like Alphabet.
Copyright (c) 2017 CercleFinance.com. All rights reserved.