Google Share Target Soars To $600

    January 3, 2006
    WebProNews Staff

The sky may be the limit for many, but for Google it looks even higher, as analyst firm Piper Jaffray ups its prediction to $600 per share of GOOG.

How high is high enough for Google investors? Price targets of $400 faded after strong earnings from the search advertising company easily propelled shares of GOOG upward.

UBS called for a $500 target recently, but now Piper Jaffray has even went higher. An article on noted Piper’s latest target, a whopping $600 per share for Google:

“Although such a high multiple may seem aggressive, we believe that given Google’s dominant position in an already large yet still rapidly growing market, its phenomenal brand power, and its status as a technology leader justifies such a valuation,” Piper said.

Piper also has Google rated at “outperform,” a tremendous vote of confidence for a stock that currently trades at a P/E ratio of 95. The Wall Street Journal cited comments from a Piper analyst about reasoning for the $600 target:

Analyst Safa Rashtchy reiterated his outperform rating and made Google his top pick in the large capitalization category. Rashtchy expects new initiatives, in particular Google’s ad network and Google Base, to generate meaningful revenue by the end of 2006.

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David Utter is a staff writer for WebProNews covering technology and business.