Alphabet’s (GOOGL) Google is planning to expand its cloud computing base in Germany by investing about €1 billion ($1.2 billion) by 2030, according to a report published by The Associated Press. The company is also planning to increase the use of renewable resources.
Alphabet operates a broad portfolio of businesses, and Google is its largest unit, housing its cloud and advertising businesses. (See Alphabet stock charts on TipRanks).
The report states that the company’s plan includes new cloud computing centers in Berlin and in the town of Hanau. Google will be buying about 140 megawatts of electricity from Engie (ENGIY), a France-based utility company, to run these data centers.
On August 25, Raymond James analyst Aaron Kessler reiterated a Buy rating on Alphabet and raised the price target to $3,200 from $2,750. The analyst’s price target suggests 10.7% upside potential.
Kessler said, “While 2Q comps will start to get more difficult in the 2H, we continue to expect robust growth for Google across the board and meaningfully increased estimates (2021/2021 revenues increase by 5%/8%).”
Consensus among analysts is a Strong Buy based on 30 unanimous Buys. The average Alphabet price target stands at $3,173.55 and implies upside potential of 9.7%.
GOOGL scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.