Google parent Alphabet taps Eli Lilly exec as new CFO
Published: 15:00 06 Jun 2024 EDT
Google parent company Alphabet Inc (NASDAQ:GOOG) has appointed its new finance chief after nearly a year-long search.
Taking over the role of chief financial officer is Anat Ashkenazi, who joins the company from drugmaker Eli Lilly and Co (NYSE:LLY).
Analysts at Jefferies believe investors will welcome the appointment.
“We note Eli Lilly’s shares delivered a 300% plus return during Anat’s tenure as CFO versus the SP50 at about 35%,” they wrote.
“We look positively on the potential for Anat to bring much-needed disclosures to Alphabet such as revenue, margin and earnings per share (EPS) guidance, which we believe would allow investors to underwrite a higher multiple.”
Ashkenazi joined Eli Lilly in 2001 and held multiple positions before becoming CFO in 2021. During her 23-year tenure, the drugmaker’s shares appreciated more than 900%, the analysts highlighted.
They wrote that while Ashkenazi does not come from a technology background, she is a good fit due to her experience managing a large portfolio of businesses.
They also believe her biotechnology experience could be advantageous for Alphabet’s AI efforts.
“We believe that Anat's experience as CFO of a biotech company will suit her well to steer Alphabet in the age of AI, driving investments in new experimental AI products whose revenue may be uncertain and far off, while also protecting margins,” they wrote.
They also pointed out her acquisition experience, with Eli Lilly announcing several transactions valued at $1 billion in 2023.
“We look at Alphabet’s choice to hire a CFO with this experience as potentially indicative of future M&A, but we note Alphabet faces fierce regulatory pressure,” they wrote.
The analysts have a ‘Buy’ rating and a $200 price target on Alphabet.
Shares of Alphabet traded higher following the CFO announcement, up 0.5% at about $178.
