Google Inc (GOOG) Price Target Raised To $1,400 By Canaccord

Canaccord Genuity analysts Michael Graham and Maria Ripps increase Google Inc (NASDAQ:GOOG)’s price target from $1,370 to $1,400 and rate the company as a Buy as they glean new information on the company.

On January 29, Google Inc (NASDAQ:GOOG) announced that Lenovo Group Limited (ADR) (OTCMKTS:LNVGY) (HKG:0992) will acquire its Motorola Mobility smartphone business for $2.9 billion (in a combination of cash, stock, and a three-year promissory note). We continue to believe this is a smart move by Google, and our positive outlook for the stock remains unchanged. We are adjusting our model to reflect the reclassification of MMI as a discontinued operation until the transaction closes (which we expect to happen in the next few months).

Google: Investment highlights

  • Removing MMI from our consolidated model removes $3 to $4 billion in revenue per year while also removing $0.5 to $1.0 billion in operating losses per year.
  • We note that these changes should help Google Inc (NASDAQ:GOOG) stock screen better for certain types of investors, as consolidated operating margins will be expanding noticeably.
  • Based solely on the reclassification, we are increasing our non-GAAP EPS estimates for 2014, 2015, and 2016 from $55.00, $65.23, and $76.40 to $57.04, $67.22, and $78.02.


We are increasing our price target for Google Inc (NASDAQ:GOOG) slightly from $1,370 to $1,400. Our new target is based on 21x (unchanged) our slightly higher 2015 non-GAAP EPS estimate of $67.22 (up from $64.04).

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)

About the Author

Sheeraz Raza
Sheeraz is our COO (Chief - Operations), his primary duty is curating and editing of ValueWalk. He is main reason behind the rapid growth of the business. Sheeraz previously ran a taxation firm. He is an expert in technology, he has over 5.5 years of design, development and roll-out experience for SEO and SEM. - Email: sraza(at)

Be the first to comment on "Google Inc (GOOG) Price Target Raised To $1,400 By Canaccord"

Leave a comment

Your email address will not be published.