UPDATE: Nomura Reduces PT to $840 on Google Post Disappointing Earnings

Nomura reiterated its Buy rating on Google

but reduced its price target from $900 to $840. Nomura commented, "GOOG reported 3Q:12 results below us and the Street. Core GOOG gross advertising revenue came in 3% below us and the Street, and advertising revenue ex-TAC came in 5% below us. GOOG's mobile business is indeed ramping and reaching scale as the company said its mobile revenue is now running at an $8bn annualized run-rate, up ~220% from the $2.5bn annualized run-rate in 3Q:11. In the near-term, lower mobile monetization and cannibalization away from desktop searches is impacting GOOG's total revenue growth. We are lowering our forward EPS by 7% and our PT from $900 to $840. Near-term numbers will need a resetting, but we continue to like GOOG's long-term position to keep winning in search regardless of the platform." Google closed at $695.00 on Thursday.