Nomura Discuses Implication for Google (GOOG) on Potential Loss as Apple (AAPL) Default Search Engine

Recent reports highlighted that Google's (NASDAQ: GOOG) (NASDAQ: GOOGL) agreement as the default search engine in Apple's (NASDAQ: AAPL) Mobile Safari browser on the iPhone and iPad may be up for renewal in early 2015. Expectation see Yahoo/Microsoft pitching Apple hard for this business. Amid the discussion, Nomura Securities analyst Anthony DiClemente attempted to quantify the implications to Google if the Google/Apple relationship were to be severed, however likely or unlikely this may be.

"While a separation could create headline risk and disruption for Google users on iOS platforms, we believe it would result in a relatively contained financial risk of roughly $2 to 2015E EPS of $29.17; applying our 22x target 2015E P/E multiple, this would result in a ~$47 (~7%) decrease in our $640 target price," DiClemente said.

The firm maintained a Buy rating and $640 price target on GOOG stock.

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 $501.96 yesterday.

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