Google Could Go As High As $880/share ; Apple (AAPL) ‘More Attractive’: Analyst

Google (GOOG) has been uptrending for some time now, with the stock up more than 28% y/y. This positive price action gave the equity the momentum it needed to rally to an all-time high of $786.67 last Friday, eclipsing stock’s previous record of $775.60 reached on February 1. The ticker however, has been retreating from its $786 level in the last couple of sessions on news that former CEO Eric Schmidt plans to unload a sizable chunk of his Google holdings. Yet, the stock, which currently trades for 13x enterprise value to cash flow, could still be on a bullish streak, an analyst told CNBC on Monday.

“I’m still bullish on this stock technically. I think it’s premature to be bearish or to sell shares here,” Mark Newton of Greywolf Execution Partners, said on “Squawk on the Street.” He called the search giant’s stock “structurally sound,” adding that trading volume acceleration would confirm an upward momentum.

“I think the stock could get up to as high as $850 to $880,” Newton said, with the security breaking out of what he sees as a multi-year range. “The fact that we’ve gotten above the prior high of $775 really puts the stock in an excellent position technically, in my view.”

Google shares were $784.59 in pre-maket hours trading on Tuesday, giving the company a market cap of $258 billion.

I think it is worth noting that Google shares seem a bit overbought here. So, a near-term consolidation may be in the works.

During the interview Newton also talked about Apple (AAPL), pointing out that the $500 level is going to be very important for a stock that looks “more attractive technically,” even relative to other tech names.

“If [Apple] gets over $500, I think we could get over $565 up to $600 as legitimate targets,” he said. “The recent lows really need to hold. If you get under $437 it’s likely to pull back to $390 or so, but I think it’s a good risk-reward.”

AAPL has underperformed recently, falling 26.5% over the past six months.

Apple shares were $480.20 in pre-maket hours trading on Tuesday, giving the company a market cap of $451 billion.

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