Once again we’re hearing murmurings that Google Inc (NASDAQ:GOOG) may soar past $1,000 per share. Analysts at JPMorgan Chase & Co (NYSEJPM) issued a report to investors today reiterating their overweight rating and raising their price target for the stock to $1,025 per share.
Even More Confidence In Google’s Enhanced Campaigns
More than one analyst has issued reports on Google Inc (NASDAQ:GOOG)’s new Enhanced Campaigns advertising platform. JPMorgan Chase & Co (NYSEJPM) analyst Doug Anmuth said that after their recent call, they believe the new ad platform will positively impact the search giant’s pricing and the overall search spending of its customers. They also see the risk of near-term revenue dislocation being reduced.
JPMorgan Chase & Co (NYSEJPM) analysts said they believe Enhanced Campaigns will drive higher costs per click as a result of increased competition, especially in mobile advertising. They increased their cost per click growth for this year, next year and 2015 as a result. This year’s growth goes to -2.7 percent, while next year goes to positive .2 percent. In 2015, they’re modeling for 1.7 percent growth, although they believe these estimates might still be conservative.
The analysts also noted other positive search engine marketing trends, including Performics, RKG and iProspect. They noted that both iProspect and RKG are having strong second quarter search growth and that all three of them are seeing positive cost per clock growth.
Google’s Android And Motorola Revenue
The analysts also increased their Licensing and Other revenue for Google Inc (NASDAQ:GOOG) because they’re increasingly positive on sales of Google’s Nexus devices through the Google Play store. They also say that the search giant will see higher app sales as more and more Android devices are sold. They pushed their Other revenue estimate for next year by 17 percent and by 19 percent for 2015.
The analysts also modestly increased their Motorola estimates for the second half of this year, next year and 2015. They based their estimates on better views of possible new devices and also better cost controls. In their view, Google Inc (NASDAQGOOG)’s MotoX, which is launching this fall, could be more powerful and have better battery life than devices that are currently on the market. They also believe that other features might set it apart from other devices. Management at Motorola indicated that the device will be widely distributed across carriers.
Even though they increased their estimates for Motorola, they still expect it to post operating losses through 2015.