Google (GOOG) Q1 Better Than Headlines Suggest - Baird

Baird analyst Colin Sebastian reiterated an Outperform rating and $675 price target on Google (NASDAQ: GOOG) following Q1 results, which were clouded by one-time costs.

Sebastian comments, "Q1 results better than headlines suggest. Despite negative headlines after the print, our review of Q1 results suggests a largely in-line quarter with a seasonal decline in ad spend, and we believe that Google remains on track to leverage multiple long-term growth opportunities (e.g., mobile, video, enterprise, local, wearables, etc.) Specifically, core revenue growth continues to exceed 20%, and we estimate that EPS was in-line to slightly above expectations adjusting for one-time expenses. Maintain Outperform rating, and buy on pullbacks."

The firm lifted FY 2014 EPS from $27.30 to $27.47 and FY 2015 EPS from $30.94 to $31.12.

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 $556.54 yesterday.

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