According to a Wall Street Journal (WSJ) report, Wing Aviation, a subsidiary of Alphabet Inc., has requested approval from the Federal Aviation Administration (FAA) to allow it to expand its drone operations to increase its efficiency in drone deliveries and and enable the company to control drone flights from a central hub.
Drone pilots would be able to oversee all flight operations from the central hub without having to be stationed at the aircraft’s operating area. Alphabet’s (GOOGL) Wing has requested permission to launch drones from multiple locations with less frequent visits from the authorities, according to the WSJ.
Wing Aviation competes with the likes of Amazon (AMZN) and United Parcel Services (UPS) and wants to tap into drone technology for automated deliveries. Alphabet is scheduled to announce its 1Q 2021 results on April 27, 2021. (See Alphabet stock analysis on TipRanks)
Stifel analyst Scott Devitt rates Alphabet stock a Buy with a price target of $2,350, implying upside potential of 2.18% to current levels. He stated, “We expect 1Q gross revenue of $51.8B (+26% y/y), just above the Street’s estimate of $51.4B (+25% y/y).”
“Alphabet continues to drive growth at scale through strength in mobile search, YouTube, and programmatic advertising, while investing in other key initiatives (cloud, hardware, AI) that should serve as multi-year growth levers. Google’s core business has high utility and durability as a dominant leader in search and ad-supported online video”, said Devitt.
Consensus among analysts on Wall Street is a Strong Buy based on 31 unanimous Buy ratings . The average analyst price target of $2,480.93 implies upside potential of 7.87% to current levels.
Alphabet scores an 8 out of 10 on TipRanks’ Smart Score ranking tool, implying that it’s likely to outperform the overall market.
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