UPDATE: Credit Suisse Reiterates on Google on Positive Iteration Point

In a report published Thursday, Credit Suisse analyst Stephen Ju reiterated an Outperform rating on

, and raised the price target from $725.00 to $735.00. In the report, Credit Suisse noted, “Google reported mixed 1Q14 results with revenue ex-TAC of $12.2b vs. consensus $12.3b and CS $11.6b; Pro Forma EPS of $6.27 fell shy of consensus $6.44 but exceeded CS $6.11. The bottom line results were negatively affected by one-time legal and acquisition-related expenses that flowed through the G&A and R&D lines respectively. Despite the mixed set of financial results, we believe the most important takeaways from the 1Q14 report was the positive inflection in the CPC decline rate, which was -9% YOY (vs -11% in 4Q13) on what were tougher comps coupled with continued strong volume growth. "We believe this is one of the first fledgling signs of the benefits Google is set to realize from the pricing convergence between mobile and desktop on the back of products such as Enhanced Campaigns, App Indexing, as well as tools to help advertisers make cross-device attributions. As such our investment thesis remains unchanged and we reiterate our Outperform rating.” Google closed on Wednesday at $563.90.