Alphabet Stock Target Raised To $900 On YouTube Red Adoption

Shares of Alphabet Inc. climbed 1% in premarket trade Tuesday after Credit Suisse raised its price target on the stock to $900 from $850 after calculating in the estimated revenue contribution from YouTube Red, the company's new ads-free video subscription service. Alphabet is positioned to benefit from a strong conversion rate for the service, even if fewer than 10% of YouTube's one billion users switch to YouTube Red from the ads-based model, Credit Suisse said. The average 12-month stock target among a poll of more than 40 analysts polled by FactSet in $854.60.