Alphabet Class A (GOOGL – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Youssef Squali from Truist Financial maintained a Buy rating on the stock and has a $220.00 price target.
Youssef Squali’s rating is based on Alphabet’s strategic acquisition of Wiz, a rapidly growing cybersecurity firm, which is expected to significantly enhance Google’s cloud offerings. The acquisition aligns with Google’s focus on improving cloud security and leveraging AI, positioning Google Cloud more competitively in the market.
Additionally, the valuation of Wiz, despite being at a premium compared to other cloud companies, reflects Google’s commitment to investing in high-growth areas. With a strong cash position, Google is well-equipped to pursue further growth opportunities in cloud and enterprise software, even as its core search advertising business matures. These strategic moves underpin Squali’s confidence in Alphabet’s long-term growth potential, justifying the Buy rating.