Will Google Finally Deliver? Deutsche Bank Weighs In

In a report issued Wednesday, Deutsche Bank analyst Ross Sandler and his team looked at Google Inc GOOGL GOOG ahead of Thursday’s earnings report. Will this is finally the moment bulls have been waiting for or not.

The experts note that Google’s decade of outperformance slowed down after 2013. To address this, the company has been working hard over the year.

Despite not-so-amazing growth retrieved recently, Google stands as the firm’s top pick in large-cap Internet for 2015 on the back of:

1) The stocks’ oversold conditions and attractive valuation.

2) The sustained ex-FX growth for Websites revenue.

3) The change in tone the analysts perceived in January “around greater accountability in expense growth (starting to get ‘priced in’ now).”

4) The predominantly bearish sentiment towards the company, derived from regulatory and mobile risks – the experts say this “feels like a contrarian’s dream scenario.”

Related Link: Axiom's Victor Anthony Previews Google Earnings

While the analysts don’t favor 10 percent upticks into any Google print, “and think the CFO has undue investor expectations around her first 60 days on the job,” they believe the company still delivers and should continue to do so, as “stable margins, light top line (solely from FX) and positive tone should keep the momentum going in 2H15.”

Consequently, Deutsche Bank maintains a Buy rating and $670.00 price target on the stock.

Sandler and his team expect “the obvious BIG wildcard” to be the CFO’s message to shareholders. However, the firm believes she will deliver.

Deutsche Bank is modeling Websites revenue of $12 billion (below consensus of $12.3 billion), EBITDA of $6.7 billion (again, below consensus of $6.9 billion), earnings of $6.47 per share (versus consensus of $6.70 per share), and overall gross revenue of $14 billion (compared to the $17.7 billion consensus estimate).