Why Google could soar to $1,300
A UBS analyst ups the stock's price target, citing innovation and a push toward 'disruptive endeavors.'
By Christopher Freeburn
Google (GOOG) is on a run. The stock climbed above $1,000 a share for the first time in October and has been setting all-time highs constantly ever since.
Still, UBS analyst Eric Sheridan says he thinks Google is poised to rise even higher.
On Monday, Sheridan issued a research note raising his target price for Google stock to $1,300 a share. That's a $200 jump from his prior target price for Google stock, Barron's notes.
Sheridan says the stock has more room to grow because the company "continues to innovate" and is pursuing "disruptive endeavors." He expects those efforts will allow Google to increase its reach into new markets.
The analyst had already marked Google stock as a "buy," a position he is sticking with. Sheridan predicts that Google will be able to realize strong revenue growth with "flattish margins" while providing "cash returns to shareholders."
Google's stock price rose more than 1% in Tuesday morning trading, setting all-time intraday highs above $1,137 per share.
Originally built around its popular Internet search engine, Google has since become a broader technology giant. Its reach has expanded to include a mobile operating system and devices, a program to create self-driving cars and wearable computers, among other things.
Just last month, Google purchased Boston Dynamics, which develops robots for the U.S. military.
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