Alphabet Inc (NASDAQ:GOOGL) self-driving car maker Waymo and Jaguar teamed up yesterday for an alliance, where Waymo’s transportation platform will add 20,000 developed Jaguar I-Pace all-electric fully autonomous vehicles to its fleet within two years’ time.
Top analyst Victor Anthony at Aegis notes that with this amount of I-PACEs, there will be “enough to drive about a million trips in a typical day.”
Keep in mind, this is a company focused on honing the future of its self-driving platform. Google intends to offer options to cater to users who choose to commune as they work remotely, dine with peers, or even those craving a good nap. Adding the Jaguar partnership to the table that already boasts a Chrysler deal primed to include thousands of vehicles for delivery in 2018, Alphabet’s Waymo is carving quite an impressive lead for itself in the autonomous market.
Overall, “Waymo is plowing ahead in the midst of challenges by others: 1) Uber’s self-driving vehicle death last week and subsequent suspension of testing by Arizona’s Governor; 2) Nvidia, whose technology was used in the Uber self-driving car, paused its own self-driving tests in California and New Jersey; 3) Toyota suspended its self-driving vehicle testing; and 4) the National Transportation Safety Board is investigating whether Tesla’s semi-automated driving system was engaged during a crash that resulted in a man’s death last week. Waymo’s CEO John Krafcik, in response to competitor’s recent challenges, stated that Waymo has driven 5M autonomous miles in 25 cities across the U.S., has driven 5B miles in simulation to ensure that its software and sensors are the best they can be, and Waymo has 20K different test scenarios on their test tracks. The recent challenges faced by competitors will only further Waymo’s lead in this evolving and disruptive industry,” Anthony contends.
Therefore, the analyst reiterates a Buy rating on GOOGL stock with a $1,350 price target, which implies a close to 34% upside from current levels.
Victor Anthony has a very good TipRanks score with a 67% success rate and a high ranking of #78 out of 4,759 analysts. Anthony earns 17.0% in his annual returns. When recommending GOOGL, Anthony realizes 11.8% in average profits on the stock.
TipRanks highlights a strong bullish camp betting on GOOGL stock. Out of 27 analysts polled in the last 3 months, 24 rate a Buy on Alphabet while 3 maintain a Hold. The 12-month average price target stands tall at $1,307.88, marking 29% in return potential from where the stock is currently trading.