Image Source: Pixabay
Alphabet (GOOG, GOOGL), the parent company of Google, is scheduled to report third-quarter results after the market close on Tuesday, October 24, with a conference call scheduled for 4:30 pm ET. What to watch for:
CHECKS ‘LARGELY’ POSITIVE: Stifel raised the firm’s price target on Alphabet to $154 from $145 and keeps a Buy rating on the shares. Ahead of earnings for the digital advertising group, the firm said its digital ads checks were “largely positive overall,” with growth that is pacing inline to ahead of internal plans as exiting the year. The firm has slightly adjusted its models, noting that some of its adjustments are based on the timing of key launches. The firm favors the names that its checks suggest are accelerating into the end of the year, so it prefers Meta (META), Trade Desk (TTD), and Pinterest (PINS) across its large cap coverage.KeyBanc also raised the firm’s price target on Alphabet to $155 from $145 ahead of quarterly results, while keeping an Overweight rating on the shares. The firm continues to see slight improvements in the ad market heading into Q4 driven by strength in retail/e-commerce and stable CPG, but notes growing concern heading into 2024 on the strength of the recovery and sustainability of retail and travel ad spend.Earlier this month, BofA raised its price target on Alphabet to $146 from $142 and kept a Buy rating on the shares. The firm notes that Statcounter’s data indicates Google’s search market share of 91.6% was slightly down in September, but adds that Bing search share also declined 2 basis points month-over-month to 3.0% and was down 44 points year-over-year in September.
ON THE SIDELINES: Seaport Research initiated coverage of Alphabet with a Neutral rating and no price target on Tuesday. The firm is constructive on the long-term growth of the Internet sector, though revenue growth is “generally mixed,” with some companies still recovering from the pandemic and others facing tougher comps. Many of the covered companies in the space have increasingly focused on operating margins over the last 12-18 months and are beginning to see the benefits as growth stabilizes and, in some cases, reaccelerates, added the firm, which sees the group being set up for outperformance going into 2024.Keeping an Equal Weight on the shares, Wells Fargo raised the firm’s price target on Alphabet to $126 from $121 ahead of quarterly results. Steady near-term, 2024 likely more turbulent, the firm says. Wells is raising Q3 YouTube revenues slightly and sees modest Services revenue growth acceleration in Q4. The firm is also raising 2024 CC revenues and sees better near-term operating leverage, though modestly offset by expected TAC pressure now pushed to the second half of 2024.More By This Author:What Wall Street Experts Are Saying About Microsoft Ahead Of Earnings
Webuy Shares Soar In Market Debut
What Wall Street’s Experts Say About Netflix Ahead Of Earnings