Cantor Fitzgerald analysts reaffirmed their Neutral rating and $190 price target for Alphabet (NASDAQ:GOOGL), expressing cautious optimism for the company’s upcoming third-quarter earnings report on October 22. The analysts anticipate Alphabet will post solid results, with revenue aligning with expectations and EPS likely surpassing Visible Alpha consensus estimates. Positive ad trends for both Search and YouTube are expected to drive top-line growth, while favorable legal expenses could also contribute to earnings upside.
The analysts acknowledge that ongoing antitrust challenges remain a concern but anticipate that upcoming remedies from the Department of Justice’s Search trial could offer more clarity, potentially alleviating some pressure on Alphabet’s stock in the near term. While not expecting significant shifts in guidance under Alphabet’s new CFO, the analysts will look for updates on the company’s expense growth outlook beyond fiscal 2024. Despite medium-term risks related to antitrust and AI competition, the analysts view the current risk/reward profile as favorable heading into the third-quarter earnings announcement.