In anticipation of Alphabet Inc.'s (GOOGL) upcoming first-quarter earnings report, Roth Capital has revised its price target for the tech giant. The firm's new target stands at $180, down from the previous $220. Despite this adjustment, Roth Capital continues to maintain a Buy rating on the stock.
The modification in price target follows an update in Roth Capital's financial model assumptions, particularly concerning Alphabet's revenue growth. The firm projects a steady decline in growth for the company's core search business. It forecasts a decrease to 8% growth in the second quarter, dropping further to 6% in the third quarter. By the end of 2025, Roth anticipates growth to slow significantly to approximately 1%.
Similarly, YouTube, another key component of Alphabet's portfolio, is expected to see a reduction in growth rates. Roth Capital predicts YouTube's growth will decelerate to 9% in the second quarter, fall to 7% in the third quarter, and eventually taper off to 2% by the close of 2025.
These adjustments reflect a more conservative outlook on the future performance of Alphabet's core businesses in an evolving market landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Alphabet Inc (GOOG, Financial) is $207.59 with a high estimate of $234.00 and a low estimate of $173.00. The average target implies an upside of 35.36% from the current price of $153.36. More detailed estimate data can be found on the Alphabet Inc (GOOG) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Alphabet Inc's (GOOG, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Alphabet Inc (GOOG, Financial) in one year is $195.73, suggesting a upside of 27.63% from the current price of $153.36. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Alphabet Inc (GOOG) Summary page.
