What The Street Thinks Of Google Ahead Of Earnings
Wedbush: Neutral, $530 price target
Shyam Patil and James Dix wrote:
"While we believe there are several potential positive emerging catalysts (upcoming mobile algo change, paid app placement ads, new CFO), we are cautious on 1Q given feedback from our checks and a ~1-2% incremental deterioration in currency…For 1Q15, we estimate Google net revenue of $13.75 billion(13 percent y/y vs. 17 percent y/y in 4Q14 and 22 percent y/y in 1Q14), vs. consensus $14.06 billion. We estimate non-GAAP EPS of $6.56, vs. consensus of $6.63."
"Despite growth tracking below expectations in 1Q, our checks are maintaining their growth expectations of~15-20 percent for 2015 as they remain optimistic about advertisers picking up spend after a seasonally slow 1Q."
Deutsche Bank: Buy, $625 price target
Ross Sandler and Lloyd Walmsley wrote:
"Sentiment around Google continues to grind lower in the face of short term noise around paid click deceleration, FX, margin and CF degradation concerns among other medium term issues like EU regulatory. We take a slightly different view on things, namely that Google is under-going a changing of the guards among senior management similar to when Larry Page took over in 2011, which typically means better/faster execution looking ahead."
"We continue to see 5 percent downside and 40 percent + upside from current levels, and Google remains our top large cap idea."
B. Riley: Buy, $604 price target
"Our estimates call; for a net rev/Pf EPS of $13.88B/$6.55 vs. consensus of $14.1B/$6.61...The biggest headwind for Google is the Euro/GBP decline of 11 percent/6 percent Q/Q and we could see further downward revisions post results."
SunTrust Robinson Humphrey: Buy, $650 price target
Bob Peck and Rodney Hull wrote:
"We believe Google offers the most option value in our coverage and combined with solid financials and attractive valuation merits a Buy rating. The foundation of Google's core remains strong and it is what enables the company to explore new growth industries. 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."
"We think the company has been a pioneer in not only navigating the changing landscape, but catalyzing the changes itself. Google continues to invest in big ideas with large TAMs and while the payoffs of these investments is unknown we remain optimistic based on previous success and our understanding of new areas being explored (i.e., bioengineering, Glass and wearables, automotive data, fiber and broadband internet, etc)."
SunTrust estimates revenue for the first quarter to be $14.1 billion and EPS to be $6.44.
Latest Ratings for GOOG
|Jan 2017||Pacific Crest||Reinstates||Overweight|
|Jul 2016||JP Morgan||Maintains||Overweight|
|Apr 2016||Deutsche Bank||Maintains||Buy|
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