UPDATE: Deutsche Bank Raises PT on Google form $662 to $686

Deutsche Bank reiterated a Buy rating on Google

and raised its price target from $662 to $686. Deutsche Bank noted, “We see strong 2Q core Google results as a bullish preview for 2H and reiterate our Buy rating ahead of the holiday season. Google saw 2Q reaccel. in FX- neutral top line growth, particularly encouraging in light of deteriorating macro. ROW FX-neutral ad revs rose 29% y/y (no decel.) and UK ad revs +22.7% y/y from +19.5% y/y in 1Q. Core business PF EBIT margins of 47.7% beat our 47.1% est, showing disciplined cost controls. We expect shares to move higher into stronger 2H ad environment, particularly with mobile CPCs rising and upcoming shopping seasons likely to drive increased comparison shopping from retail using mobile search.” Google closed at $593.06 on Thursday.