On Friday, Piper Sandler adjusted its outlook on Alphabet Inc's (NASDAQ:GOOGL) shares following the tech giant's first-quarter earnings report. The firm raised the price target to $200 from the previous $160 while maintaining an Overweight rating.
Alphabet reported a robust first quarter, with Search revenue increasing by 14% year-over-year, exceeding both the average analyst projection of 12% and institutional investor expectations ranging from 12-13%. The company's YouTube and Cloud services also outperformed forecasts and showed accelerated growth.
The strong operational margin highlighted in the recent earnings report indicates Alphabet's successful efforts in improving its cost structure. This financial discipline, combined with the revenue growth, has contributed to the company's impressive quarterly results.
The analyst from Piper Sandler reaffirmed the Overweight rating, expressing confidence in Alphabet's performance and potential. The new price target of $200 reflects the firm's positive outlook on the company's future financial prospects.
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