Tech giant Alphabet Inc (NASDAQ:GOOGL) received a big price target boost from analysts at Axiom Capital this morning, who are bullish on the stock ahead of this month’s earnings report.
The firm reiterated its Buy rating on GOOGL and lifted its price target from $990 to $1,000. That new target suggests a massive 25% upside to the stock’s Friday closing price of $800.71.
Axiom made the change based on increased valuation expectations, and boosted its earnings estimates for the Google parent accordingly. The analyst provided the following forecast for Alphabet’s upcoming earnings, which will be delivered on Oct. 27 after the closing bell:
The firm upped its target and estimates following recent channel checks, which included iProspect, Merkel/RKG, IgnitionOne, Kenshoo, SMX Conference, and Advertising Week presentations. Furthermore, Axiom sees an even better 2017 ahead, citing continued search innovations, mobile search strength (both spend and pricing), and continued growth momentum at YouTube.
Alphabet shares rose $3.47 (+0.43%) to $804.18 in premarket trading Monday. Year-to-date, GOOGL has gained 2.92%, trailing the 5.48% rise in the benchmark S&P 500 index in the same period.