Google Price Targets Creeping Upward

I remain amazed at many observers’ amazement at the inevitable climb in Google share price targets. Today we have Drew Peck at Bear Stearns putting a $700 target on the stock, and it is inevitable that a major equity analyst will put a $1,000 target on the stock — joining me — before the end of the year.

After all, at $700 the stock would be priced at 36 times consensus 2008 earnings estimates, a profit number that is almost certainly too low, and something like 20 times 2009 figures. All of this, of course, on a company still growing revenues more than 50% year-over-year, and with more than a few potential surprises — like mobile, video, and, yes, a Yahoo breakup — that could take things much higher.