SunTrust Lowers Price Target On Google

SunTrust maintained a Buy rating and lowered its price target on Google Inc GOOG from $725 to $675 in a report issued Friday.

Analyst Robert S. Peck claimed that while the 3Q results were modest, the core business "enables investments" and the "valuation is attractive."

The report noted that core Google sites were up 20 percent y over yeary, the U.S. reaccelerated to +15 percent and Network sites improved to +9 percent. Licensing and other revenues +50 percent for third straight quarter.

Peck commented that when it comes to ad dollars migrating online, "Google can deliver content, scale, and measurement."

The report concluded that "Google continues to dominate search share and be a leader in display, video, mobile, and software applications. The network effects created powerful product extensions to provide a prolonged period of growth."

The price target was based on a multiple of 10x EV/EBITDA and 18x EPS.

Google Inc traded at $520.20 in the premarket, down 0.82 percent.