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Google stock to top $1,000: Pro

Thursday, 18 Jul 2013 | 1:44 PM ET
Expect Google stock to top $1,000: Pro
Thursday, 18 Jul 2013 | 12:23 PM ET
Barclays analyst Anthony DiClemente makes the case for what could send shares of Google to $1,066.

Google's stock price is headed north of $1,000 per share, Barclays analyst Anthony DiClemente said Thursday.

"I just think when you look at the market, there's a real dearth of large-cap names in technology that are consistently growing revenue at 20 percent, so you could count them on your fingers," he said. "So I really think that there's scarcity value in Google."

Google traded at $913.44 per share, down one-half percent in midday trading. The company will report quarterly earnings after the stock market close.

On CNBC's "Fast Money," DiClemente said that he was "overweight" on shares of Google.

"We do think it's going to $1,000," he added.

DiClemente argued that the valuation in Google was not overextended.

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"If you look at next year's Street earnings consensus, and you take 20 times earnings, I don't think that's unreasonable at all for a company growing revenue consistently 20 percent," he said. "You get to $1,066."

DiClemente said that he had assigned moderate value for the company's products, such as Google Glass or its self-driving car.

"Really, our model is conservatively just looking for improvements in terms of the core search business that Google continues to dominate, their dominance on mobile with Android, with YouTube," he added. "And we just think the Street's going to be looking for firming and improvement in pricing of keywords on smartphones and tablets."

Advertising technology was the main driver of Google's steady revenue performance, a factor that continued to draw investors, DiClemente said.

"Trees don't grow to the sky, but this company is coming close in terms of the steadiness of the topline," he added.

Trader disclosure: On July 18, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Josh Brown is long AAPL; Josh Brown is long DD; Josh Brown is long PFE; Mike Murphy is long BAC; Mike Murphy is long C; Mike Murphy is long CAT; Mike Murphy is long LEN; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long EBAY; Stephanie Link is long UTX; Stephanie Link is long HON; Stephanie Link is long DD; Stephanie Link is long VALE; 7/12 Jon Najarian is long AAPL; Jon Najarian is long JPM; Jon Najarian is long GDX overwrite calls; Jon Najarian is long FB; Jon Najarian is long MSFT ; Jon Najarian is long BAC; Jon Najarian is long SPRD; Jon Najarian is long NOK; Jon Najarian is long COP; Jon Najarian is long NTAP; Jon Najarian is long OC; Jon Najarian is long TMO; Jon Najarian is short EEM thru puts; Jon Najarian is short GLD puts.

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