(CercleFinance.com) – The title soared by nearly 7% the day after the quarterly results of the technology group.
Jefferies reaffirms its ‘buy’ recommendation on Alphabet with a price target raised from $3,500 to $3,600, deeming it attractive at a 2023 EV/EBITDA ratio based on 12.4 times its raised estimates.
Recall that the group announced net profit which practically doubled, from $40.2 billion in 2020 to $76 billion in 2021, i.e. EPS of $112.2. EBIT follows the same trajectory, rising from $41.2 billion to $78.7 billion in the space of one year. Revenue was $257.6 billion for fiscal year 2021, up 41% compared to the previous fiscal year.
‘The massive and diverse audience, combined with an expanding and innovative advertising format portfolio, delivered another strong quarter at scale ($75 billion, or 32% growth, at 35% operating margin) ‘, notes the broker.
Jefferies is raising its expectations for Alphabet in 2022, now targeting net revenue of $244.9 billion, an operating margin of 35.7% and EPS of $118.86, down from $241.9 billion, respectively, 35, 6% and $109.53 in previous expectations.
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