Cantor Top Analyst Chimes in on Alphabet Inc (GOOGL); Expects Solid 2Q:16 Results

Cantor analyst Youssef Squali is bullish on Google’s parent company Alphabet Inc (NASDAQ:GOOGL), set to deliver a solid quarter tomorrow. As such, Squali reiterates a Buy with a price target of $940, a 24% increase from where the stock is currently trading.

Currently, Squali’s expectations run just under consensus for net revenue of $16,575.5 million against consensus estimate of $16,852.7 million, and earnings estimates of $8,314.4 million compared to $8,348.8 million. Meanwhile, the analyst’s NEPS estimate is just under the Street’s of $8.00 at $7.97. With an optimistic forecast, Squali comments, “We believe results will be driven by Search and Display on O&O sites in the U.S., with tailwinds from continued mobile search momentum. PLAs, programmatic, and video should also be major revenue drivers.”

So far, multiple SEO checks have demonstrated lowered rates in the search engine’s overall advertising. Still, Squali finds growth continues to be steadily in double-digits. Even consensus estimates for third quarter expect future growth, with net revenue of $17,562.5 million, EBITDA of $8,647.6 million, and NEPS of $8.35. Squali contends that especially with Google Shopping Product Listing Ads rising and a demand for heavy investments in areas such as GCP and Other Bets, Google will be able to overcome its weaknesses.

According to TipRanks, Youssef Squali has earned the ranking of a five-star, top rated analyst. Squali has earned a success rate of 69% and yields an average profit of 14.8% in his annual returns.

TipRanks analytics show GOOGL as a Strong Buy. Of the 25 analysts polled, 100% rate a buy for the stock. The 12-month average price target is $921.33, marking a 21% upside from where shares last closed.


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