Bernstein Research analyst Jeffrey Lindsay, increased it price target on Google today to $750 a shares stating that Google is poised to gain from changes to its online ad platform, AdWords, which should drive revenue higher.
According to Lindsay, Google by changing its AdWords program by ‘slapping’ low quality advertisers and arbitrage marketers off its search results pages by re-pricing many low-cost keywords used by these companies, is driving down paid clicks, but also driving keyword pricing higher.
‘What ComScore doesn’t give is the other side of the story — the pricing or cost per click, which Google has been successfully driving up for several quarters now,’ Lindsay wrote in a client note.
Google’s stock is up $18 a share today .
What a value