JP Morgan Raises Alphabet Price Target to $200.00, Maintains "Overweight" Rating

JP Morgan maintains an "Overweight" rating on Alphabet (GOOG) and raises its price target from $195 to $200, a 2.56% increase, signaling higher growth expectations. Analysts predict an average price target of $202.67, with a high estimate of $225 and a low of $185, implying an 11.21% upside from the current price.

In a recent update, JP Morgan has upgraded its rating on Alphabet Inc. (GOOG) to "Overweight" and raised its price target from $195 to $200, signaling higher growth expectations. This move reflects a 2.56% increase in the price target, which is slightly above the current market price of $175.16.

Analysts at JP Morgan predict an average price target of $202.67, with a high estimate of $225 and a low of $185. This indicates an 11.21% upside from the current price, suggesting that the investment community is optimistic about Alphabet's future performance.

The upgrade comes as Alphabet prepares to release its earnings report, with analysts expecting earnings of $2.12 per share and revenue of $78.95 billion for the quarter. For the full fiscal year, the Zacks Consensus Estimates project earnings of $9.53 per share and a revenue of $326.75 billion, representing changes of +18.53% and +10.72%, respectively, from the preceding year.

JP Morgan's positive outlook is likely influenced by recent changes in analyst estimates, which have moved 0.02% higher within the past month. The company currently boasts a Zacks Rank of #3 (Hold) and a Forward P/E ratio of 18.55, which is a discount compared to the industry average Forward P/E of 20.53.

The Internet - Services industry, which Alphabet is a part of, carries a Zacks Industry Rank of 164, placing it within the bottom 34% of over 250 industries. Despite this, the industry has shown strong performance, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1.

While Alphabet's current valuation metrics suggest a discount relative to the industry average, the company's projected earnings growth trajectory, as indicated by its PEG ratio of 1.25, is in line with the industry average PEG ratio of 1.52.

In conclusion, JP Morgan's upgrade to "Overweight" on Alphabet Inc. (GOOG) reflects a positive outlook on the company's growth prospects. The higher price target of $200, along with the average price target estimate of $202.67, suggests that the investment community is optimistic about Alphabet's future performance.

References:
[1] https://finance.yahoo.com/news/alphabet-googl-declines-more-market-214504829.html
[2] https://finance.yahoo.com/news/alphabet-inc-goog-declines-more-214504728.html