UBS has revised its price target for Alphabet Inc. (GOOG, Financial), reducing it to $173 from the earlier target of $209. The investment firm maintains a Neutral rating on the tech giant's shares. This adjustment is primarily attributed to evolving advertising strategies, where marketers are funneling funds away from brand awareness campaigns towards more conversion-focused efforts.
The current environment mirrors trends seen between 2022 and 2023, with advertisers reallocating their budgets from smaller platforms to larger ones. Additionally, ongoing regulatory changes are complicating marketers' ability to devise business strategies, consequently affecting the projected growth for digital advertising budgets into 2025. This adds to the uncertainty around future developments in the advertising sector, impacting Alphabet's outlook.
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 $209.71 with a high estimate of $234.00 and a low estimate of $185.00. The average target implies an upside of 34.97% from the current price of $155.37. 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 $196.09, suggesting a upside of 26.21% from the current price of $155.37. 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.
