Needham & Company Reiterates a 'Buy' on Google (GOOG); 4Q11 Preview – Expecting Modest Upside to Expectations Given Growth in Display and Mobile

Needham & Company reiterates a 'Buy' on Google (NASDAQ: GOOG) price target of $750.00.

Needham analyst says, "We believe Google should report 4Q11 results above expectations and in-line with our estimates. Our above consensus
estimates reflect the potential upside from Google’s Display and Mobile businesses...Our 4Q11 net revenue estimate is $8,474 million is above consensus of $8,405 million and our pro forma EPS estimate of $11.00 is
above consensus estimate of $10.49."

"We believe Search revenue should be modestly above expectations as mobile search propelled queries to record volumes, but lower Cost-per-Click (CPC) rates should partially offset the benefit of this volume growth. While U.S. core search queries increased 9% YoY in 4Q11, strong mobile growth should push overall query growth above these expectations. However, mobile queries carry lower CPC rates, which we estimate declined ~6% in 4Q11, partially offsetting the significant mobile growth. We believe international search growth was solid, but declined sequentially."

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 $628.58 yesterday.

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