Oppenheimer Downgrades Google (GOOG) to Perform
Oppenheimer downgraded Google (NASDAQ: GOOG) from Outperform to Perform and cut its price target from $800 to $765.
"We are downgrading GOOG shares to Perform from Outperform following weaker than expected 3Q earnings, reflecting higher spending on Nexus tablet subsidies and the drag of the Motorola losses. While core advertising revenues were in line ex FX, we are reducing 4Q and 2013 non-GAAP EPS estimates by 5% and 6%, respectively, to reflect lower margins. As a result, we are reducing our price target to $765 from $800, suggesting only 10% upside from current levels. This assumes investors will value the stock at 16x 2013 non-GAAP EPS or using a market multiple on 2015, discounted back at 10%."
NOTE: This is the second downgrade so far today after the company's premature and weaker-than-expected third quarter results on Thursday.
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 $695.00 yesterday, with a 52 week range of $556.52-$774.38.
"We are downgrading GOOG shares to Perform from Outperform following weaker than expected 3Q earnings, reflecting higher spending on Nexus tablet subsidies and the drag of the Motorola losses. While core advertising revenues were in line ex FX, we are reducing 4Q and 2013 non-GAAP EPS estimates by 5% and 6%, respectively, to reflect lower margins. As a result, we are reducing our price target to $765 from $800, suggesting only 10% upside from current levels. This assumes investors will value the stock at 16x 2013 non-GAAP EPS or using a market multiple on 2015, discounted back at 10%."
NOTE: This is the second downgrade so far today after the company's premature and weaker-than-expected third quarter results on Thursday.
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 $695.00 yesterday, with a 52 week range of $556.52-$774.38.