Bank: “Google a top pick for 2022”

  •   
  •   
  •   

A report from investment bank BNP Paribas forecasts that Google’s Alphabet will grow this year by 4 per cent despite suffering threats over potential iOS privacy events.

The bank also suggests that Google Search could even prove to be a beneficiary as marketers shift their advertising budgets to other verticals (e.g. Search and Android-based OS platforms), offsetting any potential macro headwinds stemming from supply chain issues impacting ad budgets.

“We also believe that any temporary travel industry spending reductions were likely offset by commerce related advertising. Outside of Google Advertising, reduced Google Play fees kick in during 2022,” says BNP Paribas.

The report adds that digitalisation trends will continue driving Cloud business, stating: “Digitalisation demand remains robust, and we believe growth acceleration is possible for Google’s Cloud business in 2022. Enterprises’ key digitalisation partner Accenture delivered a significant beat and raise and accelerated hiring which we think is an indicator of the underlying cloud demand for digitalisation, including Google’s capabilities. As Google Cloud continues to gain scale, we think losses will shrink over time with breakeven in FY23, driving a re-rating of Google’s shares.”

Indeed, the bank identifies Google as one of its Top Picks for 2022, and holds its advice for investors as ‘Outperform’ with a Target share price of $3485 (currently about $2794 per share).


  •   
  •   
  •   

You must be logged in to post a comment Login