Baird analyst Colin Sebastian reiterated his Outperform rating and $720 price target on Google (NASDAQ: GOOG) (NASDAQ: GOOGL) after the company announced it will be creating a new holding company “Alphabet” later this year.

Sebastian commented, "Overall, we believe the decentralized structure could improve accountability, focus, and transparency, all positives as investors view Google's speculative businesses partly as a distraction. Moreover, the move should allow Google and other segments to promote talented employees more quickly, and reduce the risk of turnover."

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Shares of Google closed at $633.73 yesterday.

Analyst Comments

Google (GOOG) (GOOGL) Re-Org a Step Towards Greater Transparency, UBS SaysAugust 11, 2015 8:51 AM Google (GOOGL) (GOOG) 'Alphabet' Re-Org Increases Transparency and Provides Closer Look of Core Businesses, Macquarie SaysAugust 11, 2015 8:47 AM Google (GOOGL) (GOOG) Undervaluation 'Clearer' Following Alphabet News, Evercore ISI SaysAugust 11, 2015 8:40 AM Monness, Crespi, Hardt Upgrades Google (GOOG) to BuyAugust 11, 2015 8:18 AM Cantor Fitzgerald Positive on Google (GOOGL) (GOOG) New Holding Co. StructureAugust 11, 2015 8:09 AM Google (GOOG) (GOOGL) Alphabet Split Increases Transparency, RBC Capital's Mahaney SaysAugust 11, 2015 8:05 AM Google (GOOGL) (GOOG) Alphabet Re-Org 'Positive', BMO Capital SaysAugust 11, 2015 7:52 AM Google's (GOOG) Price Target Raised to $840 at Deutsche Bank August 11, 2015 7:02 AM Mizuho Securities Upgrades Google (GOOGL) (GOOG) to Outperform on the 'Alphabet Soup' CatalystAugust 11, 2015 6:51 AM Stifel Upgrades Google (GOOG) to BuyAugust 11, 2015 6:41 AM Cowen Boosts PT on Google (GOOG) to $840; New Structure Increases TransparencyAugust 11, 2015 6:12 AM Google (GOOG) Announces Plans for New Operating Structure; Will Form New Co. Call AlphabetAugust 10, 2015 4:42 PM