http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-20057222.htm
An analyst raised his 2008 price target for Google Inc. (NASDAQ:GOOG) to $700 Friday on predictions of continued advertising growth.
Calling Google ‘one of the best operating companies within our coverage universe,’ Bear Stearns (NYSE:BSC) analyst Robert S. Peck raised his price target for fiscal 2007 to $625, from a previous $550, and to $700 for fiscal 2008.
In addition to raising the price target, Peck reiterated his ‘Outperform’ rating on Google’s shares.
Skyrocketing ad revenue from its online search engine and recently acquired YouTube unit should fuel growth, as the company continues to improve on its search technology and expand its Internet products, Peck said.
‘Google’s efforts in online video, radio and print, have added a layer of value that is absent from its competitor’s portfolio of offerings and which has the potential to yield significant financial rewards,’ Peck said.
Of the 29 analysts covering Google who reported price targets to Thomson Financial, only ThinkEquity Partners previously expected the stock to reach $700 in 2008. Price targets from the remaining 28 fell in the range of $540 to $700, or a median of $600.
Peck now expects third-quarter profit of $3.88 per share, on revenue of $2.96 billion, up from previous estimates of $3.82, on revenue of $2.86 billion.
Shares of Google closed Thursday at $579.03.
