Google Inc (NSDAQ:GOOG) Might have a lot of opportunities in the year 2014, according to top analysts, who are confident about the transformation going on in the company, says a report from Tipranks. Google is the largest internet browser globally, and is used by millions of users worldwide to know almost anything related to any field. However, the company is expanding beyond just being the search engine company to become a broader technology firm.
Diverse portfolio beneficial in long run
Analysts are confident that Google would keep on penetrating deeper into segments like Mobile computing, the cloud and advertising, which makes the stock a buy this year.
Eric Sheridan, 5 Star analysts assigns “Buy” rating to Google as the company continues its “pursuit of disruptive endeavours. As Google continues to innovate, we believe it will increasingly compete with broader tech platforms across a range of businesses”, according to the analyst. Eric increased the price target of the stock from $200 to $1,300 as the company is making greater efforts to enhance its video ecosystem, (YouTube, Chromecast), hardware (Motorola, Chromebook), cloud computing, enterprise solutions, operating systems (Android and Chrome), and projects like self driving cars.
According to Eric, not every project would return high value for the company, and also time of the project pay off may differ. However, a wide portfolio of diverse projects undertaken by the company would assist the company, in the long run.
Additionally, the analyst believes that investors would keep supporting the company even if it maintains flattish margins and post mid -teen’s revenue growth further providing cash returns to shareholders. The analyst is convinced that Google can achieve these targets.
Advertising a powerful force
Another 5 star analyst Scott Davis also maintains “Buy” rating on Google saying that the company has a powerful advertising force. Scott is a firm believer of YouTube as an advertising medium and believes “offering traditional TV advertisers a high degree of ad targeting precision.” Chromecast is another such offering by the company, which entices Scott, as the device would cover 5-7% of worldwide TV ad spend by 2023 presenting “an incremental $20b opportunity.”
Google (NSDAQ:GOOG) is a relevant in every internet user life today for browsing, connecting with friends, watching video or in mobile phones. Analysts are sure that fiscal 2014 would further strengthen the presence of Google.