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Jefferies sees attractive risk/reward with Alphabet multiple near 15-year trough
The Fly

Jefferies sees attractive risk/reward with Alphabet multiple near 15-year trough

After conducting a deep dive on Alphabet, Jefferies analyst Brent Thill remains tactically cautious in the near-term given intensifying macro headwinds, but sees attractive value for "investors looking past the looming recession." The stock currently trades at an EV/EBITDA multiple "materially below" its historical average and "not far from the 7x trough hit in ’08 and ’12," Jefferies tells investors. The firm, which expects the stock to rebound ahead of revenues, as it did during ’08-’09 Great Financial Crisis, calls out easing comps, possible further cost actions and share buybacks as potential catalysts past the near-term macro hit. Jefferies keeps a Buy rating and $125 price target on Alphabet shares.

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