Google's Still Cheap

A note from Lehman underscores how much higher this stock could go. Cramer's sticking with $350.

Author:: Jim Cramer
Publish date:: Jul 14, 2005 8:38 AM EDT

Google's

cheap.

OK, I said it.

If Google can do the

2007 number Lehman

put out this morning -- $9.38 EPS -- you are talking about a stock that's just plain inexpensive. You would be buying this company at less than 1 times its growth rate of 33%.

That's nutty cheap.

If you use the

Yahoo!

(YHOO)

comparison, it should sell at $500 now.Of course, Yahoo! could be overvalued, so you could go wrong with that.

But as I read through this Lehman estimate bump, I am blown away at the earnings power of this money machine.

The stock goes higher.

I am sticking by my $350 target, though, as I think that $7.00 next year --not $7.53 as Lehman says -- is still more realistic until I know more.

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