Mizuho Securities Starts Google (GOOGL) (GOOG) at Neutral

Mizuho Securities initiates coverage on Google (NASDAQ: GOOGL) (NASDAQ: GOOG) with a Neutral rating and a price target of $595.00.

Analyst Neil A. Doshi commented, "There is a lot we like about Google - the company continues to innovate, remains laser focused on Mobile, and it grows its Display business. However, we are increasingly worried that shares of GOOGL will be range bound over the coming 12 months or more on the heels EC antitrust changes, accelerating declines in desktop search revenue, continued margin pressure, and lack of additional disclosure around key business trends."

Key points on why they are Neutral on the stock:

• Declining desktop search revenue
• Mixed engagement metrics
• Lack of transparency
• EC antitrust charges

Commenting on what could make them more positive, Doshi said, "GOOGL can do a number of things: demonstrate some spending discipline; provide new financial metrics around new businesses; offer meaningful business metrics to help investors understand trends in display and mobile; and/or repatriate some of the company's $60B cash back to investors."

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 $537.84 yesterday.

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