NEW YORK (TheStreet) --Alphabet (GOOGL) - Get Report is one of the top stock picks by RBC Capital Markets lead tech analyst Mark Mahaney. Currently, he has an "outperform" rating with a $1,025 price target on the stock.

Despite his bullish stance on Alphabet, Wedbush Securities downgraded the stock on Wednesday to "underperform" from "neutral." Mahaney discussed his disagreement with that call during Friday morning's "Squawk Alley" on CNBC.

"We still think it's the best advertising ROI engine platform on the Internet today, our surveys of 1,000 advertisers continued to affirm that," Mahaney said.

He believes that people still undervalue Alphabet's near-term and long-term assets.

"Near-term we think street numbers are probably too low, there's too much concern of a deceleration in the back half of the year. We're starting to see mobile search pricing start to rise and we think that will help with the growth rate," Mahaney explained.

Regarding long-term potential, Mahaney noted that YouTube is being underappreciated, "based on survey work we've done in multiple different countries," he added.

Shares of Alphabet were higher in late morning trading. 

(Alphabet is a core holding of Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trialhere.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

The team rates Alphabet as a Buy with a ratings score of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that it rates. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and reasonable valuation levels. Although the company may harbor some minor weaknesses, the team feels they are unlikely to have a significant impact on results.

You can view the full analysis from the report here: GOOGL

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