Two days ago, Google parent company Alphabet Inc (NASDAQ:GOOGL) hosted its annual I/O developer conference in San Francisco, California, and impressed RBC Capital analyst Mark Mahaney with its upcoming Artificial Intelligence (AI) innovations.
Therefore, top analyst Mahaney reiterates an Outperform rating, listing a price target of $1050, which represents an upside of approximately 11% compared to where the shares last closed.
“Google kicked off their 2017 I/O conference yesterday, which focused on the AI, Android and Chrome platforms, as opposed to core Search and YouTube. We continue to believe Google is investing smartly for the long-term and building competitive fly-moats,” asserts the analyst.
The tech giant is using AI to give birth to its very own Google Lens. However, this kind of lens will have nothing to do with filters to edit pictures. Unlike the glasses in the works at Snapchat and Facebook headquarters, Google Lens will instead “turn the camera into a tool,” while simultaneously serving as a translation engine for foreign languages.
The industry’s big fish is also bringing on the offense to Shutterfly with brand new features for the photo platform. Along with updates to improve sharing pictures, Google Photos is launching an AI photo book creation tool, which offers a basket of products priced between $10 and $50.
Additionally, “Google is bringing SmartPhones to an even broader audience” with Android Go, a minimalistic version of Android. Android Go will enable people coming from lower economic regions where communication is restrained to have access to Smartphones.
Regarding Google Assistant, Google announced a few additional updates such as sharpened voice recognition and the ability to type. Perhaps most importantly, Google Assistant on iPhone is on its way: “Move over, Siri.”
Bottom line, as far as Mahaney sees it, Google is putting “Pretty cool stuff” on the table.
According to TipRanks, a financial engine that measures and ranks analysts’ and bloggers’ performance, top five-star analyst Mark Mahaney is ranked #27 out of #4561 analysts. Mahaney has a 71% success rate and generates an annual yield of 18.8%. When recommending GOOGL, the analyst earns a 16.7% average profit on the stock.
TipRanks analytics show GOOGL as a Strong Buy. Based on 26 analysts offering recommendations for this share, 21 issue a Buy and 5 maintain a Hold. The 12-month average price target stands at $1039.55, making a nearly 10% upside from where the stock is currently trading.
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