Analyst Stephen Ju from Credit Suisse analyzed Alphabet Inc (NASDAQ:GOOGL) impressive earnings report that reported better than expected net revenue. GOOGL experienced an accelerated revenue growth of 25% due to “continued benefits from product improvements in search across all devices as well as YouTube and programmatic.”

The analyst acknowledges that investors have several positive catalysts to look forward to in the second half of the year as Alphabet rolls out several anticipated products, such as Expanded Text Ads. Furthermore, traffic acquisition costs (TAC), a critical source of revenue for Alphabet, continues to rise. This rise in TAC combined with expense control and lower-than-expected capital expenditures has increased the analyst’s 2016 free cash flow, or FCF, estimates.

Ju’s investment thesis for Alphabet is based on several parts. First, it is based on the “narrow of mobile/desktop monetization gap in International” combined with the increase in price for CPCs due to increased products like app install and an increase in ads on mobile and desktop. Second, Ju expects more contribution from non-search businesses like YouTube and Play. Lastly, the upward bias to estimates still exists from Alphabet’s other bets.

Ju maintained his Outperform rating with an increased price target of $940, marking a 19% increase form current levels.

According to TipRanks, the analyst has a yearly average return of 15.9% and a 71% success rate. The analyst has a 41.7% average return when recommending GOOGL, and is ranked #51 out of 4,083 analysts.

TipRanks shows that out of the 32 analysts who rated Check Point in the last 3 months, 97% gave a Buy rating and 3% gave a Hold rating. The average 12-month price target for the stock is $944.53, marking a 19.36% upside from current levels.

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