This article first appeared on GuruFocus.
Citizens analyst Andrew Boone reiterated Market Outperform ratings on Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN), leaving price targets unchanged at $515 and $315. Alphabet and Amazon shares are little change in premarket.
On Alphabet, Boone applies roughly 32x an estimated $16.27 in 2027 earnings per share. The market is currently paying 21.3x that same number. His case runs on YouTube and search leadership, distribution across products with more than a billion users each, and high profitability.
Amazon gets a slightly lower multiple, about 29x an estimated $10.99 per share in 2027, while the market is currently pricing it at 24.1x. He also has the stock at 11.0x a $262 billion 2027 EBITDA forecast. The argument is logistics capability underpinning retail, plus AWS leadership in cloud.
