Google Inc (NASDAQ:GOOGL)’s stock has experienced tremendous growth since its initial public offering 10 years ago at a mere $42.50 (split-adjusted); since then the stock has risen to nearly $600, an increase of almost 1,300%. While it won’t achieve that same growth over the next decade, analysts by and large are still bullish on Google Inc (NASDAQ:GOOGL)’s stock, as CNBC’s Dominic Chu reported today.
Chu compared firstly the low and high end target prices, which analysts have set for Google Inc (NASDAQ:GOOGL)’s stock. On the low end of the scale is Brian Wieser at Pivotal Research, who has a price target of $570 on the stock.
“Wieser has a ‘Hold’ rating on the stock, saying the company has spent a lot of money outside of its core business; as a result, he says the business’s profile will be lower margin in the future than it is right now. He also cites industry concerns over privacy and data sharing […],” Chu says.
On the other end of the spectrum is a $750 price target set by FDN Securities after Google Inc (NASDAQ:GOOGL)’s most recent earnings report, in which they reported that their site-click growth was very strong. FDN also credits them with strong international growth. Overall, analysts polled by FactSet have an average target price of $671 for Google Inc (NASDAQ:GOOGL) stock, a potential upside of 13.5% from its current level.
With that low end price target being mere percentage points below the current price, it’s clear to see that even worst-case scenario, there is very little risk in Google’s stock, while a lot of potential upside still remains, making it a solid bet for those for whom the cost of entry isn’t an obstacle.