Paul Rossington, an analyst from HSBC, has initiated a new Buy rating on Alphabet Class A (GOOGL).
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Paul Rossington has given his Buy rating due to a combination of factors that highlight Alphabet’s strategic positioning and growth potential. One of the key reasons is Alphabet’s comprehensive AI strategy, which includes the development of the Gemini model and Ironwood chips, supported by a vast array of datasets. This approach is expected to drive growth in both Google Search and Google Cloud, with the latter benefiting from the adoption of generative AI processes that enhance efficiency and customer retention.
Additionally, YouTube is anticipated to experience further growth, particularly through subscriber increases in YouTube Music/Premium and a shift towards connected TV. The potential for additional monetization, especially with YouTube Shorts, adds to the company’s appeal. With a target price of USD 285, suggesting a 16% upside, Rossington sees significant growth opportunities in Alphabet’s core businesses, justifying the Buy rating.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $252.00 price target.