Top Stories
Top Stories

Alphabet to rise 28% on cloud unit: Pacific Crest

Deepak Sansta | Hindustan Times | Getty Images

Shares of Alphabet are poised to break out as investors realize the technology giant is one of the best emerging cloud plays out there, Pacific Crest told clients Wednesday, reiterating an overweight rating.

Alphabet is a "cloud stock without a cloud multiple," analyst Evan Wilson wrote in a research note. "We continue to believe that momentum in cloud supports our thesis that an improving cloud narrative at Alphabet could warrant multiple expansion, similar to what drove significant appreciation of AMZN and MSFT last year. "

The Google Cloud Platform could start to gain an edge versus its big enterprise cloud competitors Amazon Web Services and Microsoft Azure's once customers' focus turns to data and analytics, an expertise for the company, according to Wilson.