Nomura Securities Cuts Price Target and Estimates on Google (GOOG); Near-Term Sentiment Negative
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Price: $161.10 +0.74%
Rating Summary:
41 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
41 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Nomura Securities maintains a 'Buy' on Google (NASDAQ: GOOG) price target of $750.00 (from $800.00).
Analyst, Brian Nowak, said, "GOOG sentiment remains cautious as the stock has underperformed the market by ~1,900bp in 1H12, and its forward multiple has compressed to new lows and a discount to the S&P 500. We attribute this to four main areas of concern – declining cost-per-click (CPC), macro weakness and search advertising deceleration, Motorola Mobility (NYSE: MMI) and Apple (Nasdaq: AAPL). The 2Q12 CPC compare is the toughest of 2012 and we expect CPC to decline 15%; but this is largely optics and not a sign of search pricing or demand weakness. We expect the next datapoint to be an EPS beat, as GOOG is likely to report 2Q 12 earnings the week of 9 July. Consensus remains noisy given MMI, but our core GOOG revenue and EBIT estimates for 2Q are 3% above the Street."
FY12 EPS estimate cut from $45.35 to $43.73 and FY13 from $53.13 to $50.84
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 $585.98 yesterday.
Analyst, Brian Nowak, said, "GOOG sentiment remains cautious as the stock has underperformed the market by ~1,900bp in 1H12, and its forward multiple has compressed to new lows and a discount to the S&P 500. We attribute this to four main areas of concern – declining cost-per-click (CPC), macro weakness and search advertising deceleration, Motorola Mobility (NYSE: MMI) and Apple (Nasdaq: AAPL). The 2Q12 CPC compare is the toughest of 2012 and we expect CPC to decline 15%; but this is largely optics and not a sign of search pricing or demand weakness. We expect the next datapoint to be an EPS beat, as GOOG is likely to report 2Q 12 earnings the week of 9 July. Consensus remains noisy given MMI, but our core GOOG revenue and EBIT estimates for 2Q are 3% above the Street."
FY12 EPS estimate cut from $45.35 to $43.73 and FY13 from $53.13 to $50.84
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 $585.98 yesterday.
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