Goldman Sachs Cuts Price Target on Google (GOOG) to $475

Goldman Sachs lowers its price target on Google (Nasdaq: GOOG) from $520 to $475, but maintains a Buy rating, citing concerning consumer confidence and search data.

Specifically, the firm believes that declining average order values at retailers such as eBay (Nasdaq: EBAY) and Amazon.com (Nasdaq: AMZN) should bode negatively for Google as such a slowdown reduces "theoretical threshold bids per keyword." Further, the firm is hearing negative comments from other search providers such as Ask.com and AOL, which cited "declining consumer propensity to click on paid links and declining advertiser willingness to bid up paid links."

Goldman Sachs cut its FY09 and FY10 EPS estimates on Google from $22.20 and $25.15 to $21.67 and $23.77, respectively, which compares to the Street's FY09 estimate of $22.64. For Q4, the firm cut its EPS estimate on Google from $5.11 to $5.09, versus the consensus of $5.42.

Traders are responding to the Goldman note in today's light-volume trading session. Shares of Google are currently down 4.85%, most recently trading around $304. Notably, Google stock set a new 52-week low this morning when it traded as low as $301.80.

Google, Inc., a technology company, maintains index of Web sites and other online content for users, advertisers, Google network members, and other content providers.

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