Morgan Stanley lowers the target on Alphabet Inc.(GOOGL:NSD) to $3270

STA Research
by: STA Research

Morgan Stanley maintains the Overweight rating on Alphabet Inc. and lowers the company’s target price to $3270 from $3450 per share.

USB maintains Alphabet Inc. with a Buy rating and lowers the target price to $3600 from $3850 on the company’s stock.

Based on the Alphabet Inc stock forecasts from 32 analysts, the average analyst target price for Alphabet Inc is USD 3,422.03 over the next 12 months. Alphabet Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Alphabet Inc is Bullish , which is based on 9 positive signals and 3 negative signals. At the last closing, Alphabet Inc’s stock price was USD 2,373.00Alphabet Inc’s stock price has changed by -8.74% over the past week, -16.25% over the past month and +2.73% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

What we don’t like:

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

 

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