Stifel's Scott Devitt Explains The Similarities That Makes Google 'Berkshire Hathaway Of The Internet'
Following Google Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)'s announcement on Monday that it will be reorganizing its business under a new umbrella company Alphabet Inc., Stifel's Scott Devitt published a report on Tuesday in which he upgraded Google to Buy from Hold with a price target of $850.
In his report, Devitt argued that Google's stock can have a multi-year run and also called the company the Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) of Internet. Devitt was on CNBC to explain the similarities between Google and Berkshire Hathaway.
Greater Opportunity To Value The Business
"I think what you have here, the investment community has been waiting for a long time for increased transparency from this company," Devitt began.
"So, given that view back at that point in time, which was well prior to the new CFO coming in, a more disciplined approach to reporting results and higher results based on last quarter and then this where you break apart the businesses, so you can see the operating assets that are generating the revenue and the profitability and then those that are more based on longer-term bets, gives investors a greater opportunity to value the business."
Similar To Berkshire Hathaway
"And in terms of positioning it, similar to Berkshire Hathaway, I think that that disciplined approach and then two brilliant minds at the top of the enterprise as well are some of the similarities. There are certainly differences between the two companies, but those are some of the similarities between the two," Devitt concluded.
Latest Ratings for GOOGL
|Dec 2016||Aegis Capital||Initiates Coverage On||Buy|
|Oct 2016||Credit Suisse||Maintains||Outperform|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.