Citizens Analyst Sees Alphabet Valuation Lag Market Expectations

Andrew Boone, an analyst at Citizens, has reaffirmed his Market Outperform ratings for Alphabet (GOOGL) and Amazon (AMZN), leaving their price targets unchanged at $515 and $315 respectively.

According to Boone, Alphabet is currently being valued at a multiple of 21.3 times its estimated 2027 earnings per share of $16.27, while the market gives it a slightly higher multiple of 32x that same number.

He cites YouTube and search leadership, as well as distribution across products with over a billion users each, as key factors in Alphabet's high profitability.

Amazon, on the other hand, is given a lower multiple of about 24.1 times its estimated 2027 earnings per share of $10.99, while the market prices it at 29x that number.