As Alphabet (NASDAQ: GOOGL) stock added over 10% year-to-date (YTD) to become the world’s third most valuable company by market capitalization, Andrew Boone, a Wall Street analyst at Citizens, expects another rally over the coming 12 months to reach a new all-time high (ATH).
Boone reiterated a market ‘Outperform’ rating for GOOGL stock, according to a note sent to clients on August 26. He also maintained the firm’s 12-month price target for Alphabet share price at $515.
With GOOGL price trading at $346.97 during Wednesday’s pre-market session, Boone suggests a potential 48.43% upside. This firm justified this significant upside by pointing to the company’s projected earnings growth, noting that the target is based on roughly 32 times its estimated 2027 GAAP earnings per share (EPS).
Moreover, he noted that GOOGL stock trades at 21.3x Citizens’ 2027 GAAP EPS estimate of $16.27. Additionally, the analyst remains highly optimistic on this tech giant’s ability to sustain its leading margins, driven primarily by robust consumer distribution across its core platforms and accelerating growth within Google Cloud Platform (GCP).
Essentially, Boone believes the market is currently undervaluing the company’s future earnings ability, particularly as its Artificial Intelligence (AI)-driven cloud segment continues to gain momentum.
GOOGL stock 12-month forecast
Following Citizen’s ‘Buy’ rating for GOOGL stock, 29 Wall Street analysts surveyed by TipRanks have set an average 12-month price target of $422.22, signaling a possible 21.69% growth.
The lowest 12-month price target for Alphabet stock is $350, while Boone’s target remains the highest.
Alphabet share price performance
After rallying more than 10% over the past 6 months, GOOGL stock closed Tuesday trading at $346.96. As a result, this company had a market capitalization of approximately $4.2 trillion at the time of publication.
With the Alphabet share price having formed a rising trend, over the past six months, characterized by higher high and higher lows, Citizens’ 12-month price target could be achieved if the bullish momentum persists.
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