Analyst: This FAANG Stock is a 'Bargain in Big Tech'

Analysts are upbeat toward the tech name

Alphabet Inc (NASDAQ:GOOGL) received some bullish analyst attention over the weekend, with Barron's calling the Google parent (subscription required) a "bargain in big tech," and noting that traders aren't pricing in the company's upbeat growth outlook on concern's Facebook's data scandal could result in increased government scrutiny. The expectations for stricter regulation is also one of the reasons given by fund managers who have recently reduced their exposure to troubled FANG stocks.

At last check, GOOGL stock was up 2.8% to trade at $1,037.25, climbing back above its 200-day moving average. After catching the stock's swift retreat from its Jan. 29 record high, this trendline has more recently served as a magnet since late March. However, the security is still trading 1.5% below its year-to-date breakeven level.

Despite the stock's choppy trading in recent months, analysts remain in Alphabet's corner. Of the 31 brokerages covering GOOGL, 26 rate it a "strong buy" or "buy." Furthermore, the stock's average 12-month price target of $1,278.81 represents a 23% premium to the stock's current perch.

Short sellers, meanwhile, have been reducing their exposure to Alphabet during the FAANG stock's technical troubles. Short interest fell 10.2% in the two most recent reporting periods to 3.4 million shares. This represents just 0.6% of GOOGL's total available float, or 1.7 times the stock's average daily trading volume.