Google Parent Alphabet's Stock Gains After Analyst Boosts Price Target Above $1,200

By Tomi Kilgore Markets MarketWatch Pulse

Shares of Google parent Alphabet Inc. edged up 0.2% in morning trade Monday, after MKM Partners boosted its price target, as a higher revenue outlook offsets a slightly lower margin view. Analyst Rob Sanderson raised his target to $1,210, which is now tied for the second highest among the 44 analysts surveyed by FactSet, from $1,170. The new target is 28% above current levels. There are now five analysts with price targets of at least $1,200, with Deutsche Bank's Lloyd Walmsley's the highest at $1,220, according to FactSet. MKM's Sanderson said his new target reflects higher estimates for 2017 and 2018 revenue, boosted by growth in Google Websites and Google Network. He said although traffic acquisition costs for Websites have increased, Google has been highlighting the mix shift to mobile search. The stock has lost 0.3% over the past three months, while the tech-heavy Nasdaq 100 Index has gained 4.9% and the S&P 500 has advanced 3.3%.

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