Google Inc : No fear
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05/16/2012 | 10:57am
Opinion : Bullish above 589 USD
Target price : 650 USD
Stop loss: 589 USD
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NASDAQ
IT Services / Consulting |
Google is the most popular internet services provider, famous thanks to his efficient search engine. The company offers online productivity tools as email and office suit and recently social networking. Google extended on desk applications as web browsing, editing photos and instant messaging and on operating system for mobile phone with Android.
This diversification strategy is efficient and year after year the turnover keeps growing with a 48% operating margin and a 35% net margin. Earnings per share are expected at $37.6 for fiscal 2012. Consensus is completely bullish with 34 analysts from Thomson-Reuters in the green area. Their target is at 743 USD.
Technically the stock is consolidating close to its USD 596 support. This level could lead the stock in a new bullish trend on the way to the USD 650 resistance.
Investors could take a buying position on the stock with a first target on resistance in weekly data. A stop loss will avoid disappointment below support at USD 589.
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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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