Kaufman Bros. Reiterates a 'Buy' on Google (GOOG); Solid Quarter; Look Beyond Expense Growth

Kaufman Bros. reiterates a 'Buy' on Google (NASDAQ: GOOG), PT increased from $705 to $730.

Kaufman analyst says, "We are raising our 2011/2012 forecasts by 5%-10% on the top line, but reducing pro forma EPS by 1%-3% reflecting higher growth in opex. Our new price target of $730 (previoulsy $705) is based on 19.0x our 2012E PF EPS of $38.42 and compares to 14% forward two-year pro forma EPS growth. We believe Google should continue to see mid-teens or better revenue growth for next few years, driven by international, display and mobile, as well as continued technology improvements." (FY11 EPS estimate cut from $33.60 to $32.67 and FY12 from $38.80 to $38.42)

For more ratings news on Google click here and for the rating history of Google click here.

Shares of Google closed at $578.51 yesterday.

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