Google (GOOG) (GOOGL) PT Lifted to $770 at BMO Capital; Results 'Very Positive'

BMO Capital analyst Daniel Salmon reiterated an Outperform rating and boosted his price target on Google (NASDAQ: GOOG) to $770.00 (from $670.00) following "very positive" results after the close.

Salmon commented, "We got the margin expansion and cost discipline on which yesterday’s upgrade was largely based; relative to our estimates, lower G&A was the source, exactly where it should be expected while Google still invests for growth. But there was also much more; we felt the most important elements were: 1) investor interest was piqued by comments about potential capital return when considering financing options; 2) the acceleration of YouTube metrics across the board; particularly notable was 3x the Google Preferred volume so far this year vs. the same period last year, and; 3) CBO Kordestani’s emphasis of the billion+ user bases for YouTube, Chrome, Android, Search, Maps, etc. sounded very much like the “portfolio of apps” strategy/messaging that has served Facebook so well. While we tepidly stepped into this recommendation yesterday, our conviction is now much stronger and we look for incremental insight over the coming quarters on continued cost discipline and the potential for capital return to support the thesis further."

The firm raised 2016E to $34.00 from $33.50, while 2017E goes to $39.00 from $38.50.

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 $579.85 yesterday.

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