Google $513 Next Stop

This column was originally published on RealMoney on Jan. 11 at 9:06 a.m. EST. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

The target for Google(GOOG Quote) is $513. I believe that the Goldman Sachs note, reiterating the buy rating and raising estimates to $2.90 for the quarter, could get this stock there. That's the 52-week-high, and if we take it out you have a good chance to ramp right to $550 and beyond!

Anthony Noto, the Google analyst, is the best in show on this tock. He's got a solid, rigorous analysis, including big monetization of MySpace and eBay(EBAY Quote) relationships, and growth from new formats such as YouTube and again, MySpace. Those, plus Google's own initiatives such as premium Google applications, will all produce the upside.

What's most exciting to me, though, besides the near term, is the incredible $17.47 earnings estimate for 2008. Holy cow. What should we pay for that kind of growth? How about if we just give the stock a 40 multiple -- which is not even the top multiple out there, despite this company have the highest-percentage earnings growth of any big-cap?

That multiple means you eventually are going to see something north of $680 on GOOG.

To me, this is a clarion call to own the GOOG common -- and to buy the January $510 calls right now for a buck and change.

What a wake-up call!

Random musings: If you love following stocks as much as I do and want to help me help people make money, you're someone I need. I'm looking for an experienced research assistant based in the New York metro area to help me out. (CFAs welcome.) Please send your resum and cover letter to [e-mail], with "research assistant" in the subject line.