By Canaccord Genuity
Analysts from research firm Canaccord Genuity boosted their price target for search engine giant Google Inc (NASDAQ:GOOG) from $700 to $850 per share.
Canaccord analysts Michael Graham and Shawn Rassouli cited that Google Inc (NASDAQ:GOOG)’s upward momentum will continue due to the following reasons: better cost-per-click (CPC) trends creating an upward bias on revenue estimates in the periods ahead, continued dissipation of Motorola Mobility Holdings, Inc. (NYSE:MMI) related apprehension, and multiple expansion.
Graham and Rassouli observed the search engine giant’s CPC continues to show signs of expansion or stabilizations. The research firm’s CPC tracker indicated that the company’s overall CPC slightly increased in July and August, pushed by higher desktop CPC, moderating shift to mobile and flat mobile CPCs. They think mobile ad rates will increase across the industry, beginning in the fourth quarter of the current fiscal year, on to 2013, due to the fact that other media platforms, including Facebook Inc (NASDAQ:FB) and Pandora Media Inc. (NYSE:P), are encouraging advertisers to embrace mobile advertising.
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