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Fly News Breaks for January 10, 2020
GOOG, GOOGL
Jan 10, 2020 | 06:16 EDT
Bernstein analyst Mark Shmulik initiated coverage of Alphabet with an Outperform rating and $1,600 price target as part of a broader initiation of the U.S. Internet sector with a generally positive outlook. Shmulik tells investors that he believes YouTube has the most revenue acceleration in the near-team accounting for ~25% of net new revenues in the next two years, while Maps and Images have greater ad monetization headroom than the market accounts for, and positions Alphabet well to capitalize on the hyper-growth of specialized, functional searches in the mid-to-long term. The analyst says his revenue forecast is 2%-6% above consensus over the next 3 years, primarily driven by continued growth in the ad business, even as he remains on the sidelines regarding Alphabet's ability to grow non-ad businesses given recent leadership changes.