Wall Street is notorious for being the quintessential Monday morning quarterback, often raising or lowering price targets and stock ratings after the fact, which to be frank anybody could do. At 24/7 Wall St. we keep a close eye on the analyst calls across the many firms we cover, and one thing is for sure: The higher the market trades, the more analysts seem to be trying to get it right, as there is little room for error at current levels.
In a series of new reports, the analysts at Deutsche Bank raised price targets on two red-hot tech stocks that report earnings this week, and another tech and a top health care name that already reported stellar results. All are rated Buy at Deutsche Bank.
The search giant continues to expand and is even working on a driverless car now. Alphabet Inc. (NASDAQ: GOOGL) is a global technology company focused around key areas, such as search, advertising, operating systems and platforms, enterprise and hardware products. It generates revenue primarily by delivering online advertising and by selling apps and contents on Google Play, as well as hardware products. The company provides its products and services in more than 100 languages and in 190 countries, regions and territories.
Alphabet offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal internet products, such as Search, Ads, Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome and Google Play, as well as technical infrastructure and newer efforts, such as virtual reality.
The analysts point to Google Cloud, which is the largest cloud infrastructure and engages in more technology, infrastructure research and development in headcount and dollars than any other company. That gives it the strength and wherewithal to compete with and differentiate itself from Amazon’s AWS and Microsoft’s Azure.
Deutsche Bank noted this in its report:
We like shares on Google’s 1) improving core-search monetization 2) YouTube opportunity, 3) underappreciated Pixel story, and 4) Artificial Intelligence/Machine Learning product enhancements. We would take any pullback driven by the European Commission noise or otherwise as an opportunity to add to long-term positions.
The Deutsche Bank price target was raised to $1,258 from $1,250. That compares with the much lower Wall Street consensus estimate of $1,065.67. The shares traded early Monday at $993.30. The company reports after the close on Monday.
The huge social media leader has continued to post gigantic numbers, and it is the top internet media pick for 2017 at many Wall Street firms. Facebook Inc. (NASDAQ: FB) operates as a mobile application and website that enables people to connect, share, discover and communicate each other on mobile devices and personal computers worldwide.
Its solutions also include Instagram, a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends; Messenger, a messaging application for mobile and web on various platforms and devices, which enable people to reach others instantly, as well as enable businesses to engage with customers; and WhatsApp Messenger, a mobile messaging application.
Top analysts feel that Facebook’s long-term forecasts are more easily attainable, especially as the company continues to grow and employ new platforms for online advertising. Deutsche Bank noted this:
We see Wall Street estimates likely moving higher for 2018 as the company ramps monetization in Instagram including Stories ads, rolls out more Facebook original video content, begins to monetize Messenger, and sees slightly lower than forecast operating expense and capital expenditure growth.
Deutsche Bank raised the price target to $189 from $185. The posted consensus price target is $171.38. The stock traded Monday morning at $164.80.