Google (GOOG): Goldman Doesn't See Upside to Consensus in Q1

Goldman Sachs maintained a Neutral rating on Google (NASDAQ: GOOG) with a price target of $600. Analyst Heather Bellini doesn't see upside to consensus in Q1, as checks showed sluggish ad spending in January and February. Google is scheduled to report earnings on Wednesday, April 16th after the close.

"While we expect a solid 1Q14 net advertising quarter, we don’t see upside to consensus. This is in contrast to the prior two quarters where net advertising revenue beat the Street (albeit small). Prior to 3Q13, GOOG had missed the Street’s net ad forecast for seven consecutive quarters," said Bellini.

"Our field checks underscored a sluggish January and February ad spending environment, which improved in March. On the mobile front, we heard that impressions continue to increase, but while smartphone CPCs are seeing declines given the low conversion, our checks say that strength in tablet CPC are primarily enough to offset this on a yoy basis. The question then becomes what happens when we anniversary the introduction of Enhanced Campaigns later in the year if smartphone CPCs continue to decline as our field checks highlighted and tablets have already converged to desktop levels. We are modeling yoy paid click growth of 28% and CPC growth of -9%," she added.

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 $530.60 yesterday.

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