UBS Raises PT, Revenues and EPS Estimates on Google (GOOG); Quarterly Preview as Initiatives Gain Traction
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Price: $343.54 -0.12%
Rating Summary:
44 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
44 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS reiterates a 'Buy' on Google (NASDAQ: GOOG) price target raised from $800 to $825.
Analyst Brian Pitz, said, "Our checks show continued roll-out of Product Listing Ads (PLA’s aka image ads), a key revenue driver as image ads get more clicks. In 1Q ~30% of commercial search result pages (105K+ keywords) yielded a PLA, a significant increase from 11% a year ago. The last time we tracked such a jump was 2Q11, when GOOG beat EPS consensus by 11%...Emerging businesses are growing fast and have reached a stage (annual run rate of $5B+ for Display and $2.5B+ for Mobile) where they can move the needle."
"At margin, we believe advertisers are switching from SEO (no rev for GOOG) to SEM (paid ads; good for GOOG) in Q1 as the Panda search algorithm changes are leaving de-ranked sites with little choice but to pay for ads."
UBS raises FY12 EPS estimate from $43.88 to $44.33 and FY13 from $50.45 to $51.15.
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 $630.84 yesterday.
Analyst Brian Pitz, said, "Our checks show continued roll-out of Product Listing Ads (PLA’s aka image ads), a key revenue driver as image ads get more clicks. In 1Q ~30% of commercial search result pages (105K+ keywords) yielded a PLA, a significant increase from 11% a year ago. The last time we tracked such a jump was 2Q11, when GOOG beat EPS consensus by 11%...Emerging businesses are growing fast and have reached a stage (annual run rate of $5B+ for Display and $2.5B+ for Mobile) where they can move the needle."
"At margin, we believe advertisers are switching from SEO (no rev for GOOG) to SEM (paid ads; good for GOOG) in Q1 as the Panda search algorithm changes are leaving de-ranked sites with little choice but to pay for ads."
UBS raises FY12 EPS estimate from $43.88 to $44.33 and FY13 from $50.45 to $51.15.
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 $630.84 yesterday.
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