Piper Jaffray Senior Analyst Safa Rashtchy, who late last year said Internet ad spending would shoot up to $50 billion in the next 5-6 years, yesterday raised his company's one-year price target for
search monolith Google to $600 per share from $445, according to a Reuters report. This price point, reflecting a 50 times price to earnings ratio, would be the highest put forth by any of the 24
brokers that put out model prices on Google's stock. Rashtchy projects that Google will continue its pattern of double digit sales and earnings growth through 2007 and also gain market share.
Remember back in August 2004, when people were saying even its downsized introductory sales price of $85 was too high? Well, since then the company has expanded to offer a variety of services such as
maps, local search, video search, offline ad sales and e-mail. The news yesterday prompted a $20.37 surge in Google's stock price, which finished at $435.23 a share.
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