Collins Stewart Reiterates Buy, $750 on Google

Collins Stewart maintains its Buy rating and $750 target price on Google (NASDAQ: GOOG) as 4Q miss on CPC pressure does not affect investment thesis.

Collins Stewart says, "Net revenues of $8.1B (up 28% Y/Y, up 8% Q/Q) were 3% lower than consensus of $8.4B, due to adverse FX impact of $239M Q/Q and severe CPC weakness, which more than offset paid click acceleration. PF EPS were $9.50 (up 9% Y/Y), 9% below consensus of $10.53, due to revenue shortfall, FX hedging costs and a 1x impairment charge, partially offset by operating leverage. Excluding FX revenue impact, hedging and impairment costs, the miss would have been very small."

GOOG closed at $639.57 yesterday.