Raymond James Raises Google's Price Target on Positive Outlook and Solid Fundamentals

In a report published Thursday, Raymond James analyst Aaron Kessler raised the price target on

from $1,030.00 to $1,260.00 and maintained an Outperform rating. Kessler positive outlook is based on "1) recent channel checks that indicate solid search spend growth in 4Q; 2) strong growth of Product Listing Ads; 3) mobile strength, particularly in international markets; 4) strong engagement trends, highlighted by strong YouTube minutes growth." According to Raymond James' search engine marketing (SEM) checks, search spend growth moderately accelerated from third quarter levels. Google is schedules to report fourth quarter results on Thursday, January 30th. Raymond James estimates fourth quarter net revenues of $12.01 billion versus consensus of $12.08 billion, and total net revenues with Motorola of $13.23 billion versus consensus of $13.5 billion. Kessler estimates non-GAAP EPS of $12.27 versus $12.24 consensus estimate. The analyst further estimates a 26% y/y click growth, 9.1% y/y decline in CPC's, and 14% y/y gross advertising revenues growth. Google closed at $1,148.62 on Wednesday and shares have traded as high as $1,157.63, up 0.78%.