Google (GOOG) Gets Another $1000 Target after Waze Deal
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Up: 10 | Down: 18 | New: 20
Rating Summary:
44 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 18 | New: 20
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Google (NASDAQ: GOOG) has racked-up another $1000 price target from the analyst community.
Today, Needham & Company raised its price target on the Internet giant from $900 to $1,000 following the Waze acquisition.
"We expect the move to further strengthen Google’s position as the dominant mapping service provider, while countering forays by Facebook and Apple into the space," analyst Kerry Rice said.
While terms of the deal were undisclosed, they expect the transaction value to be in excess of $1 billion.
Rice said the price tag reflects strategic importance of the company as well as the strength of its technology and data. " The acquisition keeps Waze out of the hands of Facebook (FB – Buy) and Apple (AAPL – Buy), which are reported to have recently shown interest in the company. Given the social aspect of the platform, we believe Facebook was the most serious candidate suitor for the company."
Google also solidifies its leading position in the space with the deal. "We believe the value of Waze to Google is many-fold: 1.) Waze is a highly popular app with ~47M users and should drive more mobile traffic and engagement for Google; 2.) Google can now offer enhanced traffic updates on Google Maps; 3.) Waze could provide enhanced hyper local data to help Google improve local search on mobile and improve targeting of ads for its display advertising network; and 4.) Google can leverage Waze to bring more social features to Google’s platform. According to the company, Waze users are spending an average of 7 hours and 20 minutes a month on the platform."
Ultimately, the analyst expects Google to incorporate the best of Waze and then shut it down.
For an analyst ratings summary and ratings history on Google click here. For more ratings news on Google click here.
Shares of Google closed at $879.81 yesterday.
Today, Needham & Company raised its price target on the Internet giant from $900 to $1,000 following the Waze acquisition.
"We expect the move to further strengthen Google’s position as the dominant mapping service provider, while countering forays by Facebook and Apple into the space," analyst Kerry Rice said.
While terms of the deal were undisclosed, they expect the transaction value to be in excess of $1 billion.
Rice said the price tag reflects strategic importance of the company as well as the strength of its technology and data. " The acquisition keeps Waze out of the hands of Facebook (FB – Buy) and Apple (AAPL – Buy), which are reported to have recently shown interest in the company. Given the social aspect of the platform, we believe Facebook was the most serious candidate suitor for the company."
Google also solidifies its leading position in the space with the deal. "We believe the value of Waze to Google is many-fold: 1.) Waze is a highly popular app with ~47M users and should drive more mobile traffic and engagement for Google; 2.) Google can now offer enhanced traffic updates on Google Maps; 3.) Waze could provide enhanced hyper local data to help Google improve local search on mobile and improve targeting of ads for its display advertising network; and 4.) Google can leverage Waze to bring more social features to Google’s platform. According to the company, Waze users are spending an average of 7 hours and 20 minutes a month on the platform."
Ultimately, the analyst expects Google to incorporate the best of Waze and then shut it down.
For an analyst ratings summary and ratings history on Google click here. For more ratings news on Google click here.
Shares of Google closed at $879.81 yesterday.
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