J.P. Morgan has raised the price target for Alphabet stock to $2,575 from $2,390, citing thജe company’s fundamentals.

The advertising industry was hit especiallℱy hard in the early days of the pandemic. Like many companies, Google’s parent initially faced challenges and uncertainty as a result. Advertising has since rebounded, and Alphabet has been aggressively diversifying into other business, especially cloud computing.

According to , J.P. Morgan analyst Doug Anmuth believes those fundamentals put the the company in a good position tꦚo benefit long-term.

“We remain positive on Alphabet, as we believe it is well positioned across ads, clouds, and a number of other key initiatives to both drive an🎃d benefit from long-term digital trends,” Anmuth wrote.

“And it has an attractive combination of💎 top-line scale, growth and margins, supporting our view that valuation remains attractive at 27 times our 2022 estimated Alphabet🌳 GAAP earnings per share, or 22 times our 2022 estimated GAAP earnings per share excluding cash and other bets.”