Google Rating Reiterated by FBN Securities (GOOG)
Google (NASDAQ:GOOG)‘s stock had its “outperform” rating reiterated by equities researchers at FBN Securities in a research report issued on Friday, Analyst Ratings.Net reports. They currently have a $1,400.00 target price on the stock, up from their previous target price of $1,300.00. FBN Securities’ price target indicates a potential upside of 23.31% from the stock’s previous close.
The analysts wrote, “GOOG” on April 2. The prior Class A shares will have the ticker “GOOGL”. Seyrafi noted that “the bull case keeps building” for Google. The analyst noted that paid click growth accelerated 31% Y/Y, the expected increase in profitability with Google selling Motorola to Lenova, and the acceleration of rest of world (ROW) and Network segments. FBN noted that the $0.20 EPS miss last quarter was due to weak Motorola Mobility results. With the announcement of the sale of Motorola Mobility on January 29, Lenova will pay $2.91 billion consisting of $660 million cash, $750 million in Lenova stock and a 41.5 billion three-year promissory note. The analyst commented, “We applaud this move as GOOG benefits in many ways: 1.) GOOG’s operating margin could benefit by as much as 5 percentage points as Motorola’s roughly – 20% to -30% operating margin was countering GOOG standalone operating margin of ~34% resulting in a blended ~29% operating margin. Now, operating margin may head toward 33-34%; 2.) GOOG’s relationship with Samsung, the #1 smartphone vendor with 31% unit share in CQ3 2013, may now improve as the relationship became strained after the GOOG/Motorola deal (Samsung responded by focusing a bit more on smartphones using its own Tizen OS); 3.) GOOG can still benefit by owning over 2,000 patents (only the phone business is being sold to Lenovo).”
In other Google news, Chairman Eric Schmidt sold 2,033 shares of Google stock on the open market in a transaction that occurred on Monday, January 27th. The stock was sold at an average price of $1,094.04, for a total transaction of $2,224,183.32. Following the completion of the transaction, the chairman now directly owns 1,293 shares of the company’s stock, valued at approximately $1,414,594. The transaction was disclosed in a legal filing with the SEC, which is available at this link.
GOOG has been the subject of a number of other recent research reports. Analysts at UBS AG raised their price target on shares of Google from $1,300.00 to $1,350.00 in a research note to investors on Friday. They now have a “buy” rating on the stock. Separately, analysts at Susquehanna cut their price target on shares of Google from $1,325.00 to $1,300.00 in a research note to investors on Friday. Finally, analysts at Raymond James raised their price target on shares of Google from $1,260.00 to $1,310.00 in a research note to investors on Friday. One analyst has rated the stock with a sell rating, eight have issued a hold rating and twenty-three have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and a consensus target price of $1,171.74.
Shares of Google (NASDAQ:GOOG) traded up 3.74% on Friday, hitting $1177.8199. The stock had a trading volume of 2,730,365 shares. Google has a 1-year low of $758.10 and a 1-year high of $1167.89. The stock’s 50-day moving average is $1118.81 and its 200-day moving average is $980.8. The company has a market cap of $393.5 billion and a price-to-earnings ratio of 30.90. Google also saw some unusual options trading on Thursday. Traders acquired 72,293 call options on the stock. This represents an increase of 143% compared to the typical daily volume of 29,778 call options.
Google (NASDAQ:GOOG) last released its earnings data on Friday, January 31st. The company reported $12.01 EPS for the quarter, missing the Thomson Reuters consensus estimate of $12.21 by $0.20. The company had revenue of $16.86 billion for the quarter, compared to the consensus estimate of $13.41 billion. Analysts expect that Google will post $44.07 EPS for the current fiscal year.
Google Inc (NASDAQ:GOOG) is a global technology company focused on improving the ways people connect with information.
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