Cowen Trims PT on Google (GOOGL) to $640; FX, 1x Items Hit Q4 Results, Core Ops Solid (GOOG)
Cowen and Company lowers its price target on Google (Nasdaq: GOOG)(Nasdaq: GOOGL) from $650 to $640 and maintains an Outperform rating on the stock following Q4 results.
Analyst John Blackledge noted that Google's Q4 results fell below expectations mainly on currency exchange and a few one-time items. The analyst noted that core Search, Mobile, and YouTube were mostly solid.
Looking ahead, Blackledge said, Looking ahead, we lower our 1Q15 and 2015 estimates for a larger FX headwind than we anticipated. Net-net, while financials missed our expectations, this was mostly explainable. Further, we see GOOG in an investment cycle including facilities (real estate), production equipment and data centers that should moderate (CapEx/sales basis). Commentary around YouTube was positive and the core Search/Display was mostly sound with O&O revenue +18% y/y including FX headwind, despite mixed Search metrics.
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Google closed at $510.66 yesterday.