Just how high will Google Inc (NASDAQ:GOOG) stock go this year? Analysts are lining up to say they’ve got great expectations this year. JPMorgan sees a potential price target of $1,305 this year, while Deutsche Bank sees the price going to $1,220 a share. Both firms say essentially, what’s not to like about Google this year?
JPMorgan raises estimates for Google
JPMorgan analyst Doug Anmuth and his team have increased their estimates and price target for Google Inc (NASDAQ:GOOG). Their 2014 net revenue for Google has increased to $56 billion, while their 2015 net revenue estimate goes to $67.5 billion. Both increases are 1%. Their PF earnings per share estimate for 2014 is raised to $53.17, while their 2015 estimate is raised to $65.14. They also reiterated their Overweight rating on the stock. Their previous price target was $1,100 per share.
Since its inception in January 2012, the long book of the Voss Value Fund, Voss Capital's flagship offering, has substantially outperformed the market. The long/short equity fund has turned every $1 invested into an estimated $13.37. Over the same time frame, every $1 invested in the S&P 500 has become $3.66. Q1 2021 hedge fund Read More
The analysts believe Google will continue to see share gains because of its strong positioning in video and mobile advertising. The JPMorgan team notes that mobile searchers are still less than desktop, but they think this will change as users become more comfortable using their mobile devices and as Google Inc (NASDAQ:GOOG) starts delivering “more efficient and better targeted ads.”
The JPMorgan team is also becoming “increasingly optimistic” on YouTube now that Google has begun using Nielsen’s Online Campaign Ratings tags. They think TV ad buyers will spend more money with Google since the measurement methodology will be familiar to them.
Google a “must own” for 2014: Deutsche Bank
Deutsche Bank analyst Ross Sandler and his team say Google Inc (NASDAQ:GOOG) is still at the top of their “must own” list for this year. They don’t see many other companies with as much global opportunity in consumer Internet which also trades at 17 times 2015. They note that although the search giant’s fourth quarter results may not reveal anything spectacular, they’re bullish on Google in the long term. They’re expecting core net revenue to be in line with consensus at $12.1 billion.
Like the JPMorgan team, Sandler’s team also noted that mobile remains an important driver for Google this year, as well as all consumer Internet companies. They think this year is the year of “friction being removed” from the industry. They also note that Google Inc (NASDAQ:GOOG) controls “all of the key pillars” in consumer Internet, including the operating system, apps, an app store and payments. They also expect more innovations from Google in these areas this year.