Q3 Earnings Won't Be Catalyst Google Investors Are Hoping For, But Alphabet Stock Still An 'Attractive' Buy, Analyst Says

Wedbush analyst Scott Devitt has reiterated an Outperform rating and $205 price target on Alphabet Inc. (NASDAQ:GOOG) ahead of earnings on Oct. 29. Here’s what you need to know.

What To Know: The Wedbush analyst released a new note on Wednesday calling Alphabet an “above average company” with a “below average multiple.”

While Alphabet’s advertising growth estimates for the quarter should be achievable, the potential for significant upside is limited, Devitt said. He pointed to mixed feedback from Wedbush’s third-quarter Digital Advertising Survey and recent data from Skai that showed a slowdown in Google Search growth.

Additionally, competitive pressure from Amazon.com Inc’s (NASDAQ:AMZN) Prime Video ads and increased digital video ad inventory could weigh on YouTube's performance, the analyst said. Devitt expects both ...