(News Bulletin 247) – UBS announced on Monday that it had downgraded its recommendation on the two Alphabet share classes, which it reduced to ‘neutral’ versus ‘buy’ in both cases.
The design office justifies its downgrading by the fact that it seems difficult to anticipate, under current conditions, good surprises in view of the high growth forecasts established by the market for 2024.
Another risk, according to him, is that the improvement in margins resulting from efforts in operational efficiency is destined to be absorbed by a ramp-up of investments in generative artificial intelligence.
Finally, concludes UBS, other securities in the sector such as Amazon and Meta, both recommended for purchase, present according to him more favorable risk/return profiles.
The analyst nevertheless raises his target price on Alphabet from 123 to 132 dollars.
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