Deutsche Bank Maintains Buy on Google After 4Q Miss
Deutsche Bank has published a research report on Google (NASDAQ: GOOG) after the company's 4Q earnings miss.
In the report, Deutsche Bank writes, "After huge tailwinds on FX (which aided int'l.) through the summer qtrs, Google felt the impact of an FX headwind in 4Q, resulting in a rev/EPS miss. However, fundamental growth in revs & operating profit dollars remains robust, driven by search & display ad gains, and decent opex controls. We would add to positions, as the stock trades at 14.5x 2012 EPS vs. 17% operating profit growth in 2012. The big theme to watch ahead will be whether the ad changes in 2H 2011 translate into higher ad budgets allocated to Google in '12."
Deutsche Bank maintains its Buy rating and $645 price target on Google, which is currently trading down $53.49 from yesterday's $639.57 closing price.
