Piper Sandler analyst Thomas Champion reiterated an Overweight rating on Alphabet Inc (NASDAQ: GOOGL) with a price target of $147.
Champion expects GOOGL will be an AI winner. Shares have outperformed despite the onset of a DOJ trial and seemingly ramping infrastructure investment.
The market may say that new product opportunities are forthcoming, and valuation remains undemanding.
To align his forecasts with his latest views, Champion raised CAPEX Google Cloud revenue for FY24E and FY25E and tweaked higher near-term YouTube revenues.
The analyst raised CAPEX to account for updated purchase commitment disclosure in filings. Commentary suggests this is due to further AI and data center investments.
He has not seen a spike in capex, but this may be due to capacity issues. History suggests caution. FY24E ...