UPDATE: Wedbush Initiates Google with Neutral, $640 PT on Risk of OpEx Growth
Wedbush initiated its coverage on Google (NASDAQ: GOOG) with a Neutral rating and a $640 price target.
Wedbush noted, "Our three-pronged thesis is: 1) although our revenue estimates are above the Street's on higher growth assumptions, our margin estimates are below the Street's, 2) we see the risk of higher opex growth to respond to competitive pressure in search a) on the fast-growing mobile platform (e.g., Apple), b) in the application of social signals to commerce (e.g., impact of what my Facebook friends buy on what I buy), and, perhaps most of all, c) from vertical search/ecommerce platforms (e.g., Amazon), and 3) we have a differentiated longer-term view that the economics of paid search advertising could suffer from the encroachment of “paid-attention” marketing."
Google closed at $570.44 on Thursday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.