UPDATE - Wells Fargo Downgraded Google (GOOG) to Market Perform; Emerging Risks Counterbalance Core Strengths
Get Alerts GOOG Hot Sheet
Price: $157.95 --0%
Rating Summary:
41 Buy, 6 Hold, 1 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 1
Rating Summary:
41 Buy, 6 Hold, 1 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 1
Join SI Premium – FREE
UPDATE - Wells Fargo downgraded Google (NASDAQ: GOOG) from Outperform to Market Perform. Valuation range cut from $700-720 to $620-640.
Wells analyst said, "In 2012 we see a number of emerging headwinds that could counterbalance the positive secular growth drivers in the core business. Over the course of the year we see six emerging headwinds: 1) integration of Motorola Mobility, 2) tougher comparables, 3) potential for increased regulatory scrutiny, 4) conceivable increase in operating expense to support adjacent growth initiatives as it battles Amazon (Nasdaq: AMZN), Apple (Nasdaq: AAPL), Microsoft (Nasdaq: MSFT) & Facebook, 5) negative impact from FX due to the stronger dollar, and 6) minimal room for multiple expansion. While we are very positive on many of the core fundamentals (Page as CEO, G+, Android adoption & monetization, search improvements, YouTube/Display) we now see the risk/reward profile equally weighted. From a stock perspective, we think multiple expansion is unlikely given inevitable margin decline due to Motorola Mobility (NYSE: MMI)."
To see more ratings on GOOG, Click Here
Wells analyst said, "In 2012 we see a number of emerging headwinds that could counterbalance the positive secular growth drivers in the core business. Over the course of the year we see six emerging headwinds: 1) integration of Motorola Mobility, 2) tougher comparables, 3) potential for increased regulatory scrutiny, 4) conceivable increase in operating expense to support adjacent growth initiatives as it battles Amazon (Nasdaq: AMZN), Apple (Nasdaq: AAPL), Microsoft (Nasdaq: MSFT) & Facebook, 5) negative impact from FX due to the stronger dollar, and 6) minimal room for multiple expansion. While we are very positive on many of the core fundamentals (Page as CEO, G+, Android adoption & monetization, search improvements, YouTube/Display) we now see the risk/reward profile equally weighted. From a stock perspective, we think multiple expansion is unlikely given inevitable margin decline due to Motorola Mobility (NYSE: MMI)."
To see more ratings on GOOG, Click Here
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Midday movers: Meta, IBM, Caterpillar fall; Chipotle rises
- Wells Fargo Upgrades Neurocrine Bio. (NBIX) to Overweight 'as the Company is Knocking on the Doors of the Large-Cap Club'
- Entergy Corp (ETR) PT Raised to $122 at Wells Fargo
Create E-mail Alert Related Categories
DowngradesRelated Entities
Wells Fargo, Motorola Mobility/GoogleSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!