J.P. Morgan has raised the price target for Alphabet stock to $2,575 from $2,390, citing the company’s fundamentals.

The advertising industry was hit especially hard in the early days of the pandemic. Like many companies, Google’s parent initially faced challenges and uncertainty as a result. Advertising has since rebounded, and Alphabet has been aggressively diversifying into other business, especially cloud computing.

According to TheStreet, J.P. Morgan analyst Doug Anmuth believes those fundamentals put the the company in a good position to benefit long-term.

“We remain positive on Alphabet, as we believe it is well positioned across ads, clouds, and a number of other key initiatives to both drive and benefit from long-term digital trends,” Anmuth wrote.

“And it has an attractive combination of top-line scale, growth and margins, supporting our view that valuation remains attractive at 27 times our 2022 estimated Alphabet GAAP earnings per share, or 22 times our 2022 estimated GAAP earnings per share excluding cash and other bets.”