UPDATE: SunTrust Reiterates Buy on Google After Nest Labs Acquisition

In a report published Tuesday, SunTrust Robinson Humphrey analyst Robert Peck reiterated Buy on Google, Inc.

. According to the report, analysts estimate Nest could add ~$3b of revenue to Google, or ~$1.3b to gross profit by 2017 assuming only a 5 percent penetration of homes for thermostats and smoke alarms. “Google's quest for omnipresence took another step forward today as they agreed to buy Nest for $3.2b in cash,” the report noted. “We find the deal very interesting both financially and in terms of Google's growing computing platform of car, glasses, fiber, tablets, phones and laptops. Google wants to be wherever there is computing, raising utility for it users.” Some highlights from the report included: -”Nest has raised ~$230m to-date with Google Ventures leading both the B and C rounds, alongside investors like Venrock, Kleiner Perkins, Shasta, Lightspeed and Generation.” -”Similar to our view of the Internet Universe Map, Cisco estimates that the Internet of Everything is a $14.4T opportunity globally, with ramifications across nearly all verticals.” -”Google continues to have significant optionality with a variety of efforts designed to capitalize on the next wave of disruptive computing in areas like heathcare, wearables, transportation, and now smart grid.” GOOG closed Monday at $1,134.47 with shares trading up at 1.03 percent.