Carly Forster

About the Author Carly Forster

Content Manager at TipRanks. Earned a Bachelor of Arts Degree with a Major in Communications at the University of California, San Diego.

Bank of America Corp Remains Bullish on Google Inc (GOOG) Ahead of I/O Developer Conference

Google Inc (NASDAQ:GOOG) is gearing up for its annual I/O developer conference scheduled to take place May 28 and 29 in San Francisco, California. Developers from all over are anticipating what Google will have in store in terms of innovation and direction. Most importantly, developers are looking to see what they can build on Google’s newest platforms.

Rumors have already been circulating about what new products Google will launch. Some of these new products include Android M, Smart Home Devices, Virtual Reality, Wearables, Android Pay, Android TV, and a new Internet of Things Platform (just to name a few).

In its 2012 conference, Google launched the highly anticipated Google Glass. The glasses had all the functions of a smartphone, but ultimately failed in sales. After the product’s failure, Nest Labs CEO Tony Fadell was given the task of revamping Google Glass into a newer, better version called Google Glass 2.0. Many people are waiting to see if Google Glass 2.0 will be revealed at the conference and how it will look in terms of fashion.

On May 25, Bank of America/ Merrill Lynch analyst Justin Post weighed in on Google prior to the company’s I/O developer conference, maintaining a Buy rating on the stock with a $650 price target. The analyst is most looking forward to Android Pay, an upgraded payment platform for Android users. More specifically, Post is interested to see how it will compete with Apple’s mobile payment service, Apple Pay. The analyst noted, “We expect Android Pay to be able to power in-app and in-store mobile payments capabilities for Android based devices. Google Pay news could be a sentiment headwind for PayPal.” Post is also looking forward to hearing more about Android M, the newest mobile operating system, and how it will integrate Android Pay, enhance notification controls, have better integration within cars, and how it will compete with Apple’s iPhone 6 series.

Justin Post reiterated his Buy rating on Google on May 27, this time focusing on YouTube. The analyst described YouTube as a “big asset that warrants big valuation.” Post expects YouTube to rake in $8 billion in 2015 and $13 billion by 2017 and believes the video playing website is worth upwards of $70 billion on its own.

Justin Post has rated Google 24 times since March 2009, earning a 67% success rate recommending the technology giant and a +36.5% average return per recommendation. Overall, he has a 67% success rate recommending stocks and a +18.6% average return per recommendation.

On average, the top analyst consensus for Google on TipRanks is Moderate Buy.

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