Tribe Technologies
Trending >

Is GOOGL still a buy?

GOOGL stock

Following a widely applauded first quarter beat, Roth MKM analyst Rohit Kulkarni has maintained his “Buy” rating on Alphabet (Alphabet Stock Quote, Chart, News, Analysts, Financials NASDAQ:GOOGL).

On April 26, GOOGL reported its Q1, 2024 results. The company posted EPS of $1.89 per share on revenue of $67.6-billion, topping the street consensus of $66.1-billion.

The analyst summarized the quarter.

“GOOGL reported a clean beat 1Q driven by accelerating growth in all key segments, Search, Cloud, and YouTube. Core Google Services op. margin hit almost 40%, a multi-year high as 15-month-long cost efficiencies have started to bear fruit. Moreover, for the first time in its 25+ year corporate history, Google declared a quarterly dividend of $0.20 per share on top of a new $70bn authorization in share repurchases.”

In a research update to clients April 26, Kulkarni maintained his “Buy” rating on GOOGL but raised his price target from $164.00 to $202.00.

The analyst thinks GOOGL will post EPS of $8.17 on revenue of $346.4-billion in fiscal 2024. He expects those numbers will improve to EPS of $9.22 on a topline of $385.6-billion in fiscal 2025.

“Our $202 price target is based on ~22x 2025E GAAP EPS, and implies ~21x P/E (ex-cash) plus ~$8/share in Cash and ~$5/share in Other Bets (“Other Bets” worth approx. $65bn, incl. $50bn in value assigned to self driving car unit, Waymo),” he concluded.

We Hate Paywalls Too!

At Cantech Letter we prize independent journalism like you do. And we don't care for paywalls and popups and all that noise That's why we need your support. If you value getting your daily information from the experts, won't you help us? No donation is too small.

Make a one-time or recurring donation

About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
insta twitter facebook

Comment