Bank of America analyst Justin Post raised the price target on Alphabet Inc. to $3,470 from $3,210 and reiterated a Buy rating on the shares. The price target implies an upside of 27 percent.
The analyst expects deceleration in 2022 versus the 41 percent estimated search growth in 2021. However, he thinks Google is still early in applying artificial intelligence and machine learning technology across its ad stack.
These new initiatives, such as Performance Max, “can continue to drive healthy search revenue growth,” Post notes.
In addition, traction for YouTube Shorts “appears strong,” adds the analyst. Post believes the estimated YouTube monetization of $10.92 per user “still seams early” and should benefit from the ongoing decline in TV ratings and shift in spending.
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