Alphabet shares climbed on Friday, following price target hikes at Credit Suisse, ahead of second quarter earnings release next week.
Credit Suisse analyst Stephen Ju boosted his price target on the Google-parent’s shares by 21.5% to $3,350 per share. Ju mentioned the impact of new product launches that will increase the company’s total addressable advertisement market to around $3 trillion on the back of a strategy that targets both larger and small-to-medium sized businesses with real-time inventory listings that can link to its search and map features. The analyst has an outperform rating on the stock.
Credit Suisse expects Alphabet to generate revenue growth rates of 41% for YouTube and 30% for the entire Google ad business in 2021. However, it also suggests that traffic acquisition costs are likely to be higher, due to Alphabet's increased payments to YouTube content providers among other factors.