Alphabet Inc (GOOG)

[mick]

Alphabet -5% as bulk of analysts lower price targets

Alphabet (GOOG -5.2%, GOOGL -5.5%) is lower today after a Q1 miss driven by ad price declines, and nearly a dozen analysts have come in with price target declines.
Notably, all of those maintain Buy ratings, suggesting a valuation adjustment and some product-based catalysts ahead.
The lowest targets on GOOGL came from SunTrust Robinson Humphrey and Morgan Stanley, trimming to $850 from $875 and $900 respectively. GOOGL is trading at $737.49.
SunTrust's Bob Peck says "the bull/bear debate will center around the secular cost headwinds from mobile and programmatic TAC and the incremental core investments vs. solid ex-FX topline results, the inherent leverage of the platform and incremental cash flows.”
On another end of the scale, Oppenheimer trimmed its target to $958, and Credit Suisse maintained its target at $920, saying “Google continues to show signs of opex control and controlled capex as both came in below our expectations, which led to better-than-expected adjusted EBITDA.” Macquarie actually boosted its target, to $890.
Other cuts: Baird, to $860 from $880; FBN, to $875 from $925; B. Riley, to $875 from $930; Stifel Nicolaus, to $888 from $930; JMP, to $904 from $916; and Jefferies, to $925 from $950.
Now read Did Alphabet Wreck Tech? »