Nomura Securities Boosts PT on Google (GOOG) to $860

January 18, 2013 7:43 AM EST Send to a Friend
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Nomura Securities analyst Brian Nowak raised his price target on Buy-rated Google (NASDAQ: GOOG) from $840 to $860.

He comments, "Lowering Numbers for MMI Home. Heading into results, we are updating our estimates and removing the Motorola Home business from our Google model, as we believe Google will exclude the business from its results (moving it to discontinued operations) given the pending $2.35bn sale of the business to ARRIS. This adjustment adversely impacts Google’s Motorola Mobility (MMI) segment performance. In removing Home, we are lowering our consolidated 4Q:12 Google revenue estimate by $915mn (7%) and by $3.5bn in 2013E. Google’s MMI segment (now just MMI Mobile) will now be an even greater drag on overall Google profitability. Over the long term, we view the sale of MMI Home as a positive, as it cleans up Google’s business structure and puts more emphasis on the core ad business. We reaffirm our Buy rating on Google as we believe the company's long-term position to take share within the ad markets and drive the overall desktop and mobile online ad markets is intact. FY12E EPS from $40.48 to $40.30; FY13E EPS from $48 to $47.10."

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 $711.32 yesterday.


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Related Categories

Analyst Comments, Analyst PT Change

Related Entities

Nomura, Motorola Mobility/Google

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