Google Inc : Horizontal support for a buying position
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06/01/2012 | 10:55am
Opinion : Bullish above 568 USD
Target price : 628 USD
Stop loss: 548 USD
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NASDAQ
IT Services / Consulting |
Google Inc 's share could rebound on a threshold currently tested after announcing that Google Chrome overtakes Microsoft's Internet Explorer as the first browser. Furthermore, the company from Mountain View accuse Nokia and Microsoft of Mobile Collusion on the transfer of 1200 patents.
From now until 2014, the group's profitability should improve as shown by the net margin's evolution. It will be of 35.73% in 2014 against 35.19% for this fiscal year coupled with sales increase. Today the EPS is estimated at 15.43 and at 13.04 for next year.
Technically, the share is within an horizontal trading range between USD 568 and 668.3 USD. Above the lower limit already tested many times, we could expect a return towards the resistance area of USD 600.
Therefore, the support area's proximity of USD 568 could allow active investors to take a buy position at this price. Our first target will be the resistance of USD 600 and then we could aim USD 628. We should cover this position with a stop loss under USD 550.
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Etienne Veber
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| Profitability |
2013e |
2014e |
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Operating Margin (EBIT / Sales)
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29,8% |
31,0% |
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operating laverage (Delta EBIT / Delta Sales)
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0,28x |
1,28x |
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Net Margin (Net Profit / Revenue)
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22,3% |
22,2% |
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ROA (Net Profit / Asset)
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14,2% |
14,1% |
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ROE (Net Profit / Equities)
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17,5% |
17,3% |
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Rate of Dividend
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- |
- |
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