Alphabet Class A, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Laura Martin from Needham maintained a Buy rating on the stock and has a $220.00 price target.
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Laura Martin’s rating is based on a combination of factors that highlight Alphabet’s strong labor productivity and financial performance. She notes that the company has shown a consistent increase in revenue per full-time employee (FTE), which rose by 25% from FY21 to 2Q25. This steady growth in revenue per FTE is a positive indicator for shareholders, suggesting efficient use of human resources and potential for future profitability.
However, Martin also points out some challenges, such as the decline in free cash flow per FTE and the high stock-based compensation per FTE, which could be seen as negatives. Despite these concerns, Alphabet’s strong ranking in revenue and free cash flow per FTE among large-cap stocks supports the Buy rating, as it indicates robust financial health relative to its peers.
In another report released on August 11, Bank of America Securities also reiterated a Buy rating on the stock with a $217.00 price target.