Alphabet Inc (NASDAQ: GOOG), the parent company of Google, has dipped this month currently down 10%. GOOG stock peaked in November 2021 as the wider tech market began to cool off from large gains seen earlier in the year.
At its current trading price, recent analyst coverage on Wallstreet suggests there is substantial upside to Google stock despite current inflationary and supply chain concerns. In fact, Piper Sandler analyst Thomas Champion hit GOOG stock with a fresh $3,475 price target. However, coverage on Wallstreet should be taken with a grain of salt, with current market conditions unsatisfactory for growth talks. Nevertheless, here’s what the analyst had to say regarding the current outlook on the Google Stock Forecast.
Analyst says Alphabet’s move to acquire Mandiant makes sense
In March, Mandiant announced that it had entered into a definitive agreement to be acquired by Google for $23.00 per share in an all-cash transaction valued at approximately $5.4 Billion. Mandiant is a publicly traded company who offer “dynamic cyber defense solutions powered by industry-leading expertise, intelligence and innovative technology“. In fact, Mandiant rose to prominence in February 2013 when it released a report directly implicating China in cyber espionage.
Piper Sandler analyst Thomas Champion believes the deal should complement Google Cloud Platform’s current security offerings, which include BeyondCorp Enterprise and VirusTotal. The analyst currently has an Overweight rating and $3,475 price target on Google stock (NASDAQ:GOOG).
Another analyst, Daniel Ives who has a strong background in covering Big tech stocks, notes that the move makes sense as there are more cyber threats facing enterprises/governments on the transformational shift to cloud than ever before. The Wedbush analyst reiterated that Mandiant has established itself as “the Navy Seals of cyber security” over the last decade.
Google Stock Forecast 2025 (NASDAQ:GOOG)
Overall, recent coverage from Wallstreet has remained upbeat on the Google stock forecast despite wider market concerns. However, the ad revenue setting is expected to be hit by the Ukraine crisis according to JP Morgan, which implicates a large portion of Alphabet’s (Google’s) revenue. From a growth perspective, the outlook through to 2025 remains unclear as future interest rates are likely to impede big tech. Following the GFC, it took GOOG stock 5 years to bounce back to previous heights.
However, it took GOOG stock substantially less time to bounce back from the COVID-19 shock with the stock trading 60% higher from these levels. Some investors would see this growth as unsustainable in todays markets however its current size may be a significant factor in investor confidence in the GOOG stock forecast for 2025 and beyond.
So the question remains whether GOOG is yet to feel the total wrath of the bear markets or whether analyst coverage has correctly priced in future catalysts. What do you think? Let us know in the comments below.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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