MKM Partners Upgrades Google (GOOG) To Buy
May 24, 2010 9:07 AM
MKM Partners analyst Tim Boyd upgraded his rating for shares of Google Inc (Nasdaq: GOOG) to Buy, with a price target of $600 per share.
Boyd said that the risks facing Google Inc, such as the loss of the China market, had been fully priced into the the company's stock price.
The analyst said that the approval of the AdMob acquisition was an unexpected positive. Boyd said that the consensus view had been that Google Inc would not get approval to make the acquisition and it could be a sign that the company would not be allowed to move into non-search businesses. Boyd said that with the deal's approval, this sentiment should go away.
The MKM Partners analyst wrote, "GOOG is the best-positioned stock in our coverage universe to withstand continued risk aversion. In our 5/14 note, we screened our stocks against seven key measures of an Internet company’s ability to preserve shareholder value in an environment of extreme risk aversion. GOOG screened the best against these factors, and we believe this supports our call that valuation downside from current levels is limited."
