Street View: Alphabet's $32 billion Wiz acquisition to bolster cybersecurity and cloud edge

Alphabet GOOGL.O on Tuesday announced a $32 billion acquisition of Israeli cybersecurity firm Wiz to boost its cybersecurity and cloud-computing capabilities against Amazon AMZN.O and Microsoft MSFT.O

Analysts' average rating is equivalent to "buy" with a median PT of $220 - data compiled by LSEG

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J.P. Morgan ("overweight," PT: $220) sees co's acquisition of Wiz as enhancing its multi cloud value proposition and deepening enterprise relationships

JPM believes this deal will test administration's tolerance for large-scale mergers in large-cap Internet sector, potentially setting a precedent for future M&A activities

RBC ("outperform," PT: $235) believes this news will lead to resurgence of investor questions, favoring large-cap vendors like CrowdStrike CRWD.O and Palo Alto Networks PANW.O, while smaller point-based vendors may face pressure as the market consolidates

Scotiabank ("sector outperform," PT: $232) believes that while MSFT remains largest cybersecurity vendor, Wiz acquisition should help GOOGL position itself better to compete in mid and high-end enterprise spaces

BofA Global Research ("buy," PO: $225) is optimistic about co's Cloud business as a key growth driver due to faster growth and AI demand, despite concerns about overpaying for Wiz and potential regulatory hurdles