Analyst Maria Ripps of Canaccord Genuity maintained a Buy rating on Alphabet Class A (GOOGL – Research Report), retaining the price target of $225.00.
Maria Ripps’s rating is based on Alphabet’s strategic acquisition of Wiz, a cloud security platform, which is expected to enhance Google’s cloud security offerings and accelerate its growth in the cloud market. The acquisition is seen as a strategic move to capitalize on the increasing shift towards hybrid and multi-cloud environments, where Wiz’s comprehensive security solutions can be integrated across major cloud providers. This positions Google to better compete with leading cloud providers like AWS and Microsoft Azure, which currently have a larger market share.
Additionally, Wiz’s rapid growth and unique capabilities, such as its graph-based architecture and agentless scanning, provide Google with a competitive edge in addressing complex security needs. The acquisition is expected to transform Google’s security capabilities, making them more competitive and appealing to customers. Despite the high valuation of Wiz, its potential to drive significant growth in the cloud security market supports the Buy rating, with a price target of $225 based on future earnings projections.
According to TipRanks, Ripps is a 5-star analyst with an average return of 19.1% and a 44.54% success rate. Ripps covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Spotify Technology SA, and Meta Platforms.
In another report released today, Morgan Stanley also reiterated a Buy rating on the stock with a $210.00 price target.
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