Weekly Investment Analysts’ Ratings Changes for Google (GOOG)
Google (NASDAQ: GOOG) received a number of price target changes and ratings updates during the last week:
- Google had its price target raised by analysts at Oppenheimer from $752.00 to $800.00. They now have an “outperform” rating on the stock. They wrote, “We expect GOOG to report 3Q results slightly above consensus, after the close on Thursday. Our estimates call for US core revenues to slow 200 bps vs. 2Q on a slightly harder comp, with Int’l revenues slowing 400 bps. Our net revenue estimate is 4% above the Street. While we have been critical of third-party data in the past, a larger sample size is supportive of strong results. CPC pricing appears to be improving, with total spending accelerating. Mobile probably had a -200 bps y/y impact compared to 2Q.”
- Google had its price target raised by analysts at Piper Jaffray to $834.00. They wrote, “Based on the past three Q3 reports, Google has shown an average of 7.9% q/q growth in its core business with a range of 7.6-8.6% q/q growth. We believe the Street is currently looking for around 6% q/q growth in Google’s core business. We believe that Google is likely to post sequential growth in its core business greater than the current 6% Street expectation based on an improved ad environment as witnessed in our daily display checks as well as positive third party data indications on search.”
- Google had its “outperform” rating reaffirmed by analysts at Macquarie. They now have a $795.00 price target on the stock.
- Google had its “neutral” rating reaffirmed by analysts at Wedbush. They now have a $690.00 price target on the stock, up previously from $640.00. They wrote, “While suspecting that the changing assessment of relative fundamentals of GOOG and FB is a primary driver of GOOG’s share price rise this past quarter, we think investors must nevertheless keep two other fundamental in mind. First, we look to the impact of the changing macro outlook on GOOG’s top-line growth – on balance, changes over the past quarter have been negative. Second, as we noted in our initiation thesis, we see as important the competition which search in general faces from e-commerce/vertical search, including, but not limited to AMZN. We note, for example, data in our 10/12 Media Use Survey report.”
- Google had its price target raised by analysts at Pacific Crest from $750.00 to $855.00.
- Google had its price target raised by analysts at Needham & Company from $750.00 to $825.00. They now have a “buy” rating on the stock.
- Google was downgraded by analysts at Oppenheimer from an “outperform” rating to a “market perform” rating. They now have a $765.00 price target on the stock, down previously from $800.00. They wrote, “We are downgrading GOOG shares to Perform from Outperform following weaker than expected 3Q earnings, reflecting higher spending on Nexus tablet subsidies and the drag of the Motorola losses. While core advertising revenues were in line ex FX, we are reducing 4Q and 2013 non-GAAP EPS estimates by 5% and 6%, respectively, to reflect lower margins. As a result, we are reducing our price target to $765 from $800, suggesting only 10% upside from current levels. This assumes investors will value the stock at 16x 2013 non-GAAP EPS or using a market multiple on 2015, discounted back at 10%.”
- Google had its price target lowered by analysts at Cantor Fitzgerald from $830.00 to $820.00. They now have a “buy” rating on the stock.
- Google was downgraded by analysts at Bank of America from a “buy” rating to a “neutral” rating. They now have a $745.00 price target on the stock, down previously from $790.00. They wrote, “Google is a leader in Online advertising, and we expect growth above industry levels as the company gains traction in new categories. Google should generate significant new revenues from display advertising, YouTube monetization and mobile, however we believe the mobile revenue transition could pressure Google’s near-term revenue growth and margin profile.”
- Google was given a new $800.00 price target on by analysts at Citigroup. They now have a “buy” rating on the stock. They wrote, “In terms of Investment Highlights, Google should benefit from: 1) strong secular growth in online advertising; 2) direct exposure to search, the most robust online ad segment; 3) clear market leadership; 4) under-appreciated potential for expansion beyond traditional search; and 5) the strongest outlook fundamentals in the sector. In terms of Investment Risks, Google faces: 1) Increase in operating expenses from new hires, increased marketing expenses, and legal fees; 2) Competition from Facebook, Twitter, daily deal sites, as well as from Apple, Microsoft and Yahoo!; 3) Antitrust concerns by the EU and possibly the FTC; 4) Large cash balance with increasing scrutiny on acquisitions; and 5) Greater risks as Google moves into non-core markets such as mobile operating systems, PC operating systems, tablets, social networking, display advertising, etc.”
- Google ‘s EPS estimates were cut by analysts at BMO Capital Markets. They now have an “outperform” rating and a $800.00 price target on the stock.
- Google had its price target lowered by analysts at Nomura to $840.00. They wrote, “GOOG reported 3Q:12 results below us and the Street. Core GOOG gross advertising revenue came in 3% below us and the Street, and advertising revenue ex-TAC came in 5% below us. GOOG’s mobile business is indeed ramping and reaching scale as the company said its mobile revenue is now running at an $8bn annualized run-rate, up ~220% from the $2.5bn annualized run-rate in 3Q:11. In the near-term, lower mobile monetization and cannibalization away from desktop searches is impacting GOOG’s total revenue growth. We are lowering our forward EPS by 7% and our PT from $900 to $840. Near-term numbers will need a resetting, but we continue to like GOOG’s long-term position to keep winning in search regardless of the platform.”
- Google was downgraded by analysts at Hilliard Lyons to a “buy” rating.
- Google had its “buy” rating reaffirmed by analysts at Capstone. They now have a $910.00 price target on the stock.
Shares of Google Inc. opened at 678.69 on Thursday. Google Inc. has a one year low of $556.52 and a one year high of $774.38. The company has a market cap of $222.5 billion and a P/E ratio of 21.22.
Google Inc. (Google) is a global technology company focused on improving the ways people connect with information.