Shares of Google parent Alphabet Inc (NASDAQ:GOOGL) climbed nearly 5% today, after the search engine giant released its second-quarter results, beating Street expectations and bouncing back after a slight miss last quarter. Gross revenue and NEPS of $21,500 million and $8.42 handily exceeded consensus expectations of $20,650M, and $8.04, respectively.
In reaction, Cantor analyst Youssef Squali raised his price target for the stock to $1000 (from $940), while maintaining a Buy rating. The new price target represents a potential upside of 25% from where the stock is currently trading.
Squali commented, “Alphabet reported another impressive quarter with strength across product types and geographies, resulting in revenue and EPS comfortably ahead of Street expectations. Mobile search in particular was strong driven by changes made in 3Q:15, but video and programmatic helped drive the robust results as well. Our BUY rating is predicated on 1) sustainable double-digits growth in core search, 2) strong growth in display facilitated by YouTube/Programmatic, 3) disciplined cost allocation across core Google and Other Bets, and 4) compelling valuation relative to growth prospects.”
Youssef Squali is one of Google’s biggest bulls, and he is also one of the top analysts rated who cover the stock. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, the analyst has a yearly average return of 14.3% and a 68% success rate. Squali has a 21.4% average return when recommending GOOGL, and is ranked #8 out of 4087 analysts.
Out of the 46 analysts polled by TipRanks, 45 rate Alphabet Inc. stock a Buy, while 1 rates the stock a Hold. With a return potential of 14.7%, the stock’s consensus target price stands at $920.50.