Benchmark Cuts Target on Google (GOOG) from $650 to $615, Maintains Hold

June 20, 2012 7:37 AM EDT Send to a Friend
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Benchmark's Clayton Moran reduced estimates and his price target on Google (NASDAQ: GOOG) Wednesday morning. While maintaining a Hold rating, Moran cut his target from $650 to $615.

The analyst warned "Google is likely to miss the Q2 consensus estimate for net revenue due to the following:
  • European online advertising has weakened further;
  • the decline in the Euro currency; and
  • fairly soft domestic search volume, specifically in retail."
Moran noted Google currently receives about 35-40 percent of its sales from Europe "and controls over 90% of the search market; we expect Europe will continue to drag down its revenue growth."

The Benchmark analyst is now expecting Google to report FY12 adjusted EPS of $42.50, down from $43 even previously. The Street consensus sits at $43.28.

Google shares are down 0.4 percent to $579.25 in pre-open action.

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




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