Canaccord Adams raises Google price target
Credit: Reuters
Sept 22 (Reuters) - Canaccord Adams raised its share price target on Google Inc (GOOG.O), saying the fourth quarter could have much more upside than Wall Street is modelling.
The brokerage, which has a "buy" rating on the internet search giant's stock, raised its price target by $80 to $560.
Canaccord said its recent checks suggested that ad budgets were coming back, particularly in e-commerce, and this recovery, together with strong traffic growth, bode well for the sector. "We would therefore recommend that investors add to their positions ahead of fourth quarter, given that the widely anticipated pullback in the broader market has not materialized," analyst Jeff Rath wrote in a note to clients.
Google continues to maintain its dominance in search, but it is also monetizing YouTube more than before, Rath said.
Google recently added an option that allows marketers to buy search ads on the YouTube interface.
Shares of the company were trading up 1 percent at $502.6 in pre-market trade. They closed at $497.00 Monday on Nasdaq.
(Reporting by Renju Jose in Bangalore; Editing by Ratul Ray Chaudhuri)
((renju.jose@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters messaging: renju.jose.reuters.com@reuters.net)) Keywords: GOOGLE/RESEARCH CANACCORDADAMS
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