Google-parent Alphabet's (GOOGL) revenue growth will moderate but it's the "most defensive of the FANG stocks" amid market volatility, says Canaccord Genuity, which upgraded Google to buy on Thursday. Google stock slipped, however, amid a broad technology sell-off sparked by Apple's (AAPL) fiscal first-quarter revenue warning.
XMaria Ripps, a Canaccord Genuity analyst, set a price target of 1,250 on Google stock.
"Revenue growth should continue in the 15% to 20% range for 2-3 years which, coupled with abating gross margin pressure and continued share buybacks, should lead to over 15% EPS (annual growth) between 2020 and 2022," Ripps said in a report.
In the first nine months of 2018, Google averaged revenue growth of 24%.
Google stock lost 2.8% to close at 1,025.47 on the stock market today
Google Risk From Amazon Ad Business
The Canaccord analyst expects Google and Facebook (FB) to stay dominant in digital advertising despite the rise of Amazon.com (AMZN).
"Competitive risk from Amazon's ad business is likely manageable, and we view Google as the most defensive of the FANG stocks given the steady performance and reasonable valuation," added Ripps in the report.
Aside from Google and Amazon, the closely watched FANG stocks include Netflix (NFLX) and Facebook.
Google stock has a Relative Strength Rating of 71 out of a possible 99. The relative strength line tracks a stock's performance vs. the S&P 500 index.
Amazon has a relative strength rating of 78, while Netflix lags at 51. Facebook has a relative strength rating of 32.
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The post Google Stock Upgraded, Viewed As 'Most Defensive' FANG Amid Tech Sell-Off appeared first on Investor's Business Daily.
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