Google parent Alphabet’s stock gains after Webush starts coverage with bullish rating

Google parent Alphabet’s stock gains after Webush starts coverage with bullish rating

Shares of Google parent Alphabet Inc. GOOGL, -0.48% rose 0.2% in premarket trade Thursday, bucking the broad selloff in the technology sector, after Wedbush Securities started coverage of the internet and search giant with a bullish rating a week before the company reports results, citing “compelling” valuation and an “unrivaled collection” of products and platforms. The SPDR Technology Select Sector ETF XLK, -0.46% dropped 0.9% ahead of the open. Analyst Michael Pachter initiated the stock at outperform and a stock price target of $1,350, which is 20% above Wednesday’s closing price of $1,127.59. “Google remains the global leader in the digital advertising market,” Pachter wrote in a note to clients. “Google’s dominant presence in search should help it maintain positive ad momentum for the foreseeable future.” He said Alphabet’s Android phone also positions Google to be a “key player in the expanding mobile ad market.” Alphabet is scheduled to report third-quarter results after the Oct. 25 close. The stock has shed 7.0% over the past three months, while the technology ETF has slipped 1.9% and the S&P 500 SPX, -0.03% has eased 0.2%.

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