Alphabet (GOOGL) (GOOG): Cutting Estimates but Raising Price Target - Wedbush

Wedbush analyst, James Dix, reduced his EPS estimate for Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) by a penny to $8.09 for a slightly higher FX drag. For the year EPS went from $34.32 to $34.28 but the price target increased to $800 from $750 on more aggressive assumptions in the DCF.

Key operating assumptions for the quarter:

-19.6% revenue growth ex-f/x and hedging (U.S. 17.2%, U.K. 14.0%, and rest of world 23.2%), vs. 20.9% in 3Q

-32.5% pro forma EBIT margin (up ~160bps y/y), vs. 32.9% in 3Q (up ~50bps y/y)

-gross revenue up 16.3%,

-Google Sites up 19%

-Network Sites up 3%

-Licensing/Other up 29%,

-6-pt f/x drag, vs. 8-pt drag in 3Q.

GOOGL will report 4Q15 results AMC on 2/1

For an analyst ratings summary and ratings history on Alphabet click here. For more ratings news on Alphabet click here.

Shares of Alphabet closed at $730.96 yesterday.

You May Also Be Interested In

• Robinhood Markets (HOOD) PT Raised to $130 at Cantor Fitzgerald
• Southern Co. (SO) PT Lowered to $99 at Jefferies
• Kroger (KR) PT Lowered to $63 at UBS as Execution Challenges Persist