Tech giant and Google parent company Alphabet Inc (NASDAQ:GOOGL) this morning received some strongly bullish commentary from analysts at RBC Capital Markets.
The firm reiterated its Outperform rating on GOOGL and lifted its price target from $1,000 to $1,025 noting that ongoing growth concerns for the company are overblown. That new target suggests a massive 28% upside to the stock’s Thursday closing price of $802.64.
RBC Capital noted that Google should perform just fine in the second half of the year, contrary to some other analysts’ opinion, citing several bullish catalysts, including:
In all, the firm sees 2016 EOY growth rates of up to 20% as being more likely than the Wall Street consensus mid-teens outlook. RBC’s YouTube analysis suggests a $10 billion revenue run rate alone, with 30% to 40% growth in that segment.
Google has announced a bevy of new products and services recently, which include free internet access in India, updated Travel and Photos apps, and is rapidly scaling its Express Delivery business. With Amazon taking increasing product search market share away from Alphabet, the company is doing the right thing and attempting to grow in other arenas.
Alphabet shares rose $1.43 (+0.18%) to $804.07 in premarket trading Friday. Year-to-date, GOOGL has gained 3.17%, versus a 5.29% rise in the benchmark S&P 500 during the same period.