Morgan Stanley Raising Target On Google
Morgan Stanley is out with a research report raising its price target on Google Inc. (NASDAQ: GOOG), as it moves to $730, along with its Overweight rating.
In a note sent to clients, Morgan Stanley writes, "We are adding Google to Morgan Stanley's Best Ideas list, raising estimates (which are now ~2-4% above consensus) and increasing our price target to $730 (from $700). Simply put, we don't believe consensus fully appreciates the long-term benefits of Google Instant and accelerating growth of mobile. Strong CQ4 eCommerce sales should also drive near-term upside. Google trades at 10x C2011E EV / EBITDA, but is poised to grow EBITDA 18% from C'09-C'12E. We expect estimate increases to drive a higher multiple."
Shares of GOOG are up $12.63 this morning to $590.99, a gain of over 2%.
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