Aegis Initiates a Buy on Alphabet Inc (GOOGL); Sees 20% Upside for the Stock


Top analyst Victor Anthony at research firm Aegis has come out with a bullish call on shares of Alphabet Inc (NASDAQ:GOOGL). The analyst initiated coverage on GOOGL with a Buy rating and a price target of $980, which implies a potential upside of just under 20% from where the stock is currently trading.

Anthony believes, “Despite Google continuing to benefit from multiple secular tailwinds and management actively repurchasing shares, investors have been reticent to buy into the stock this year due to tough revenue comps and the prospect of margin pressures at the core Google segment. And recently, the Trump impact and FX have been a concern. We see the stock working through these concerns due to growth opportunities in Search as a result of new and enhanced ad formats and AI, continued strength at YouTube, and growth of enterprise cloud computing. The confluence of these should help offset the tough compares and margin pressures from rising traffic acquisitions costs, hardware sales and growth investments.”

In fact, not only does the analyst dismiss apprehension falling upon Trump and foreign exchange variables and their resultant impact, he sees rapid-fire EPS acceleration bounding from a dip in corporate tax rate as well as a rise in share repurchases, surmising, “if the 60% of Alphabet’s cash domiciled oversees was repatriated and used to aggressively repurchase shares (both subject to several caveats within the Republican tax proposals).”

Victor Anthony has a very good TipRanks score with a 64% success rate and he stands at #67 out of 4,291 analysts. Anthony earns 13.3% in his yearly returns. When recommending GOOGL, Anthony gains 8.7% in average profits on the stock.

TipRanks analytics indicate GOOGL as a Strong Buy. Out of 28 analysts polled by TipRanks in the last 3 months, 26 are bullish on Alphabet stock, 1 remains sidelined, and 1 is bearish on the stock. With a return potential of nearly 19%, the stock’s consensus target price stands at $967.50.