UPDATE: Bank of America Lowers PO on Google to $710
Bank of America has published a research report on Google (NASDAQ: GOOG) and has lowered the price target from $720 to $710 after the company missed 4Q revenue expectations.
In the report, Bank of America writes, "4Q net revs. missed Street at $8.13bn (+28%) vs. $8.41bn (+32%) expected and EPS was below at $9.50 vs $10.49. EBITDA margins were ahead of BofAML at 55.9% vs. 55.2% (+100bps vs. 3Q) and EBITDA was in-line. The EPS miss vs our estimates was primarily due to other income ($0.65 of miss) and taxes, with the most important negative of the quarter being the lower-than-expected revenue growth. Tougher US comps and a German slowdown were likely key drivers."
Bank of America maintains its Buy rating on Google, which is currently trading down $53.89 from yesterday's $639.57 closing price.
