CMB International released a research report stating that Alphabet (GOOG.US) total revenue in the third quarter of this year increased by 15% year-on-year, basically meeting market expectations; net profit increased by 34% year-on-year, 15% higher than market expectations, mainly due to effective employee numbers and equipment management.

Considering the support of Google Cloud and the group's solid efficiency improvement, the bank has raised Alphabet's profit forecast for the fiscal years 2024 to 2026 by 6% to 8%, and maintains its target price at $218, maintaining a 'buy' rating.

CMB International also predicts that Alphabet's operating profit margin will continue to rise, but the growth rate will slow down. It is expected to increase from 31.4% in the fiscal year 2024 to 32.2% and 33.1% in the fiscal years 2025 and 2026, mainly due to increased depreciation costs offsetting efficiency improvements. (js/k)

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