Google (GOOG) (GOOGL) PT Lifted to $750 at Rosenblatt; 'Still Investing For Growth'
Rosenblatt analyst Martin Pyykkonen reiterated a Buy rating and boosted his price target on Google (NASDAQ: GOOG) (NASDAQ: GOOGL) to $750.00 (from $600.00) following strong results after the close.
Pyykkonen commented, "We are reiterating our Buy rating on Google (GOOGL: Buy) and raising our price target from $600 to $750, which is based on our upward revised adjusted EBITDA estimate for full year 2016 ($38.2B) and still an EV/EBITDA multiple of ~10x on our full year 2016 adjusted EBITDA estimate, as it was previously. Our price target for Google is still based on just about half of the multiple on our price target for Facebook (FB: Buy), which we consider to be fair relative valuations, based on our respective growth estimates for each company.
Some of the key highlights in Google’s 2Q15 results include:
- U.S. revenue growth accelerated and hit a recent yr/yr growth high range
- Total paid click volume (usage) growth accelerated to 18% yr/yr
- Paid click volume growth on Google’s properties accelerated to 30% yr/yr
- CPC (pricing) gaps between mobile vs. desktop search narrowed
- YouTube viewing time accelerated, especially on mobile devices
- Average session viewing time for YouTube on a mobile device is ~40 min.
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 $579.85 yesterday.