Needham & Company Trims PT on Google (GOOG) (GOOGL) Amid Slight Q3 Miss
Needham & Company analyst Kerry Rick lowered his price target on Google (NASDAQ: GOOG) (NASDAQ: GOOGL) to $625.00 (from $675.00) following weaker-than-expected Q3 results but maintained a Buy rating.
Rice commented, "Despite a slight 3Q14 revenue miss, Google Websites posted solid ~20% revenue growth, Network revenue reaccelerated, and Other revenue increased ~50%. While Paid Clicks slowed, particularly in mobile, we believe Google is well positioned for the transition to mobile, not only via search, but also via display advertising, Google Play, and by providing monetization tools to app developers. We also expect Google to benefit from its strengthening relationship with brands. Google's efforts to prove that its online advertising attribution drives offline conversions should translate into larger ad budget allocations, in our opinion. Given these growth drivers, we believe Google represents a compelling investment, particularly for those Internet investors seeking a safe harbor."
The firm lowered FY 2014 EPS from $7.43 to $7.30 and FY 2015 EPS from $9.10 to $8.89.
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Shares of Google closed at $524.51 yesterday.