Google Rating Reiterated by Morgan Stanley (GOOG)
Google (NASDAQ:GOOG)‘s stock had its “overweight” rating reaffirmed by stock analysts at Morgan Stanley in a report issued on Monday, AR Network reports. They currently have a $1,172.00 price objective on the stock, up from their previous price objective of $1,075.00. Morgan Stanley’s price target points to a potential upside of 6.06% from the stock’s previous close.
The analysts wrote, “As Google moves closer to the TV with initiatives such as Chromecast, capturing around 5-7% of worldwide TV ad spend by 2020 may present an incremental $20b opportunity,” the report said. “The economics for YouTube may become better in 2014, as Google transitions national broadcast TV and film producers to standardized 45% advertising revenue sharing agreements, as reported by Advertising Age in October 2013.” The analysts also noted that they’re increasingly confident in Google’s ability to grow share in local advertising, where a recent AlphaWise survey highlighted the effectiveness of local search marketing. Some concerns from the report included Instagram ad load could be higher or lower than our estimates, impacting revenue. The report further asserted that service-related SMBs may be more inclined to spend with Google. “When we asked SMBs to rank digital channels for effectiveness of delivering new customers, Google received the highest score relative to other online channels, indicating that SMBs perceive search advertising to be an important part of local business discovery,” the report said. “Google performed notably stronger with service-related SMBs relative to Facebook, which showed 81% effectiveness for delivering new customers amongst surveyed SMBs.”
Other equities research analysts have also recently issued reports about the stock. Analysts at UBS AG set a $1,300.00 price target on shares of Google in a research note to investors on Monday. Separately, analysts at Sanford C. Bernstein raised their price target on shares of Google to $1,350.00 in a research note to investors on Monday. Finally, analysts at Bank of America Corp. raised their price target on shares of Google to $1,250.00 in a research note to investors on Friday. They now have a “buy” rating on the stock. One investment analyst has rated the stock with a sell rating, ten have issued a hold rating, twenty-seven have assigned a buy rating and one has assigned a strong buy rating to the company. Google currently has an average rating of “Buy” and a consensus target price of $1,077.07.
Google (NASDAQ:GOOG) traded up 0.50% during mid-day trading on Monday, hitting $1110.54. 325,626 shares of the company’s stock traded hands. Google has a 52-week low of $695.52 and a 52-week high of $1121.00. The stock has a 50-day moving average of $1072. and a 200-day moving average of $949.0. The company has a market cap of $371.0 billion and a price-to-earnings ratio of 30.07.
Google (NASDAQ:GOOG) last released its earnings data on Thursday, October 17th. The company reported $10.74 EPS for the quarter, beating the Thomson Reuters consensus estimate of $10.36 by $0.38. The company had revenue of $14.89 billion for the quarter, compared to the consensus estimate of $14.79 billion. During the same quarter last year, the company posted $9.03 earnings per share. Google’s revenue was up 31.4% compared to the same quarter last year. Analysts expect that Google will post $44.18 EPS for the current fiscal year.
In other Google news, Chairman Eric Schmidt sold 35,740 shares of the company’s stock on the open market in a transaction that occurred on Tuesday, December 24th. The shares were sold at an average price of $1,111.52, for a total transaction of $39,725,724.80. Following the sale, the chairman now directly owns 1,393 shares in the company, valued at approximately $1,548,347. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.
Google Inc (NASDAQ:GOOG) is a global technology company focused on improving the ways people connect with information.
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