Google parent Alphabet is set to report 3rd-quarter earnings on Monday. Here's what Wall Street analysts are saying ahead of the results.
Bank of America: "We are optimistic on revenue opportunities from new ad formats, Shopping and Cloud."
Wedbush: "Management has the discretion to deliver significantly higher bottom line contribution than we have forecast."
Price target: $1,500
Rating: Outperform
"Growth in Q3 will likely largely reflect continued solid growth against an increasingly large and maturing base, particularly driven by Cloud, YouTube, and mobile search," Wedbush Securities analyst Michael Pachter wrote in a note to clients on October 24.
Pachter added: "While we are confident that the company can grow revenues in line with our forecast, it is clear that management has the discretion to deliver significantly higher bottom line contribution than we have forecast."
Credit Suisse: "Our conversations with advertisers suggest ongoing resilience in search and YouTube budget growth."
Price target: Raised to $1,700, from $1,500
Rating: Outperform
"Our conversations with advertisers suggest ongoing resilience in search and YouTube budget growth – we believe this is driven partly by increases to ad load for PLA as well as YouTube," Credit Suisse analysts wrote in a note to clients on October 23.
The analysts added: "As such we have raised our Google Properties estimate for 3Q19 as we were previously estimating a rather hefty (400 basis point) deceleration on a currency neutral basis."
Goldman Sachs: "We continue to view Alphabet as one of the best-positioned digital ad companies."
Price target: $1,400
Rating: Buy
"We continue to view Alphabet as one of the best-positioned digital ad companies and see non-advertising revenue streams like Google Cloud becoming a more central part of the thesis over time," analysts from Goldman Sachs wrote in a note to clients on October 17.
The analysts continued: "We expect continued investment to drive adoption of more emerging lines like hardware and Cloud."
RBC: "We continue to believe that Google Maps remains highly under-monetized."
Price target: $1,500
Rating: Outperform
"We are looking for Core Google Gross Revenue of $40.08B (up 19% Y/Y), driven by ongoing strength in Mobile Search, YouTube, Hardware and Programmatic," Mark Mahaney, an analyst at RBC Capital Markets, wrote in a note to clients on October 25.
Mahaney added: "We continue to believe that Google Maps remains highly under-monetized. The broader rollout of Local Campaigns and new Google Maps ad formats could generate between $1.9B and $3.6B of incremental Revenue."
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