Piper Jaffray Comments on Google's Mobile Outlook for 2012
Piper Jaffray has published a research report on Google (NASDAQ: GOOG) commenting on the company's outlook for FY2012.
In the report, Piper Jaffray writes, "We estimate that mobile revenues contributed $2.5 billion in gross revenue to Google in 2011. We expect mobile to grow 80% y/y to $4.5 billion in 2012. At that level, mobile would comprise about 10% of total gross revenue in FY12 from 7% in FY11. While mobile provided about a quarter of the overall CPC impact in Google's 8% y/y CPC decline in Q4, we do not believe pricing will be the main driver of mobile revenues in FY12. We expect volume to significantly drive mobile revenue as Google increases ad coverage on mobile queries. We believe pricing improvements will come when Google develops new products catered to improving local commerce."
Piper Jaffray maintains its Overweight rating and $675 price target on Google, which closed Friday at $609.90.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.