Alphabet’s Google and Deutsche Bank have announced to form a strategic partnership to provide the German lender access to cloud services and create innovation in technology-based financial products for clients.
This deal is a part of Deutsche Bank’s plan to make targeted investments in technology and innovation, utilising a budget of 13 billion euros by 2022. Both have signed a letter of intent and plan to sign a multi-year contract within the next few months.
Deutsche Bank anticipates the partnership to earn over 1 billion euros in accumulated earnings before income and tax over the next decade, reported by Reuters, citing a familiar source.
“For more than 150 years, Deutsche Bank has been an industry pioneer, with a strong record of innovation in the financial services sector,“ Sundar Pichai, CEO of Google and Alphabet said a press release. “We’re excited about our strategic partnership and the opportunity for Google Cloud to be helpful to Deutsche Bank and its clients as they grow their business and shape the future of the financial services industry.”
“The partnership with Google Cloud will be an important driver of our strategic transformation,” Christian Sewing, CEO, Deutsche Bank said a press release. “It demonstrates our determination to invest in our technology as our future is strongly linked to successful digitization. It is as much a revenue story as it is about costs.”
Google price target
Thirty-one analysts forecast the average price in 12 months at $1,527.66 with a high of $1,800.00 and a low of $1,237.00. The average price target represents a 1.87% increase from the last price of $1,499.65, according to Tipranks. From those 31, 29 analysts rated ‘Buy’, two analysts rated ‘Hold’ and none rated ‘Sell’.
Morgan Stanley target price is $1,400 with a high of $1,725 under a bull scenario and $960 under the worst-case scenario. Alphabet had its price target boosted by Canaccord Genuity from $1,550.00 to $1,700.00 and held a ‘Buy’ rating on the information services provider’s stock.
Robert W. Baird raised the price target from $1,500.00 to $1,650.00 and Goldman Sachs Group raised to $1,775.00 from $1,425.00 with a ‘Buy’ rating. The company price objective suggests a potential upside of over 23% from the company’s current price. BofA global research raised price objective to $1,610 from $1,420 and Citigroup raised it to $1600 from $1400.
“Google Websites growth is likely to rebound in 2021 as we believe there are several underappreciated products driven by mobile search, strong YouTube contribution, and continued innovation, such as Maps monetization,” Brian Nowak, equity analyst at Morgan Stanley noted in April.
“Continued expense discipline leads to operating leverage and upward revisions on EPS estimates,” the analyst added.
This article was originally posted on FX Empire
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