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Google’s Got 15 Percent Growth Ahead: Mahaney

Google’s advertising revenue is on track to beat Yahoo and Facebook within the next three years, Citi analyst Mark Mahaney told CNBC on Monday.

Mahaney has an $850 target price for Google stock, based on a 15 multiple, he said on “Fast Money.”

“I don’t think 15 is at all an aggressive for a name that can grow 15 to 20 percent, and it’s also giving you great option play,” he said.

Mahaney noted that Google’s YouTube video advertising revenue alone was around $3 billion a year.

“That could actually surpass both Yahoo and Facebook in total display revenue within the next three years,” he said. “That’s part of the value in Google that we think that the market isn’t seeing.”

Trader disclosure: On Sept. 24, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Stephen Weiss is long AAPL CALLS; Stephen Weiss is long BBT; Stephen Weiss is long M; Stephen Weiss is short VALE; Stephen Weiss is short AKS; Stephen Weiss is short RIO; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long SBUX; Stephanie Link is long BRCM; Stephanie Link is long EMC; Steve Grasso is long MSFT; Steve Grasso is long P; Steve Grasso is long QQQ; Steve Grasso is long HPQ; Steve Grasso is long PAY; Steve Grasso is long ZNGA; Steve Grasso is long COH; Steve Grasso is long IP; Steve Grasso is long KSS; Steve Grasso is long VLO; Brian Kelly is long QQQ; Brian Kelly is long GLD; Brian Kelly is long SLV; Brian Kelly is long DAX; Brian Kelly is long CAC 40; Brian Kelly is long DBA; Brian Kelly is long RJA;

For Mark Mahaney
Citigroup Global Markets Inc. and/or its affiliates has a significant financial interest in relation to GOOG
Citigroup Global Markets Inc. and/or its affiliates has a significant financial interest in relation to FB

For Brian Marshall
Neither ISI nor its affiliates beneficially own 1% or more of any class of common equity securities of the subject companies referenced in this Report. No person(s) responsible for preparing this report or a member of his/her household serve as an officer, director or advisory board member of any of the subject companies.
Neither ISI nor its affiliates have any investment banking or market making operations. At various times these reports mention clients of ISI from whom ISI has received non-investment banking securities related compensation in the past 12 months: AAPL.

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