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Nomura Lifts Google (GOOG) Target to $900

October 11, 2012 4:39 PM EDT Send to a Friend
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Price: $528.05 +0.21%

Rating Summary:
    44 Buy, 13 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 10 | New: 7
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Earlier, Nomura Securities boosted its price target on Buy-rted Google (NASDAQ: GOOG) from $770 to $900.

"After underperforming the market by 1,850bp in 1H12, Google has outperformed by 2,300bp in 2H12," analyst Brian Nowak notes. "We attribute this swing to the clearing of four non-fundamental storm clouds. We review this sea-change and move on to analyze GOOG’s emerging opportunities for incremental ad dollars – budding vertical specific innovation initiatives and YouTube – which we believe should continue to propel estimates and the stock higher. Fears around cost-per-click deceleration signaling pricing weakness have subsided, as ad dollar flow into Google remains healthy and reported CPC trends improve as y-o-y comparisons normalize. The mega-dilution concerns around MMI have also cleared, as GOOG has signaled its intent to bring the unit to "sustainable profitability". With these clouds cleared, we turn to focus on the next drivers of GOOG growth such as vertical-specific innovation around Shopping and Travel. After updating our model (for Shopping, Travel, MMI, YouTube and TAC adjustments), we are 2% above the Street in 2013."

For an analyst ratings summary and ratings history on Google click here. For more ratings news on Google click here.

Shares of Google closed at $744.56 yesterday.




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