Goldman Sachs: Google’s Price Target Should Be Higher
Google (NASDAQ:GOOG) tops the search market share list and Goldman Sachs raised estimates and its price target on the Neutral-rated company from $660 to $685. The update reported Google’s query volume at 125.2 billion for 68.6% share, down 20 bp mom and up 270 bp yoy.
The firm said it now looks like global query growth could increase considerably in the fourth quarter.
Based on a prediction that Google’s core search business results for the December quarter might exceed expectations, Goldman is raising 2011, 2012 and 2013 EPS estimates accordingly.
The firm raised 2011 EPS from $30.71 to $30.77 and 2012 from $39.17 to $39.49. 2013 was also raised.
Here’s how Google shares are reacting to the upgrade:
Google Inc. (NASDAQ:GOOG): GOOG shares recently traded at $641.02, up $0.77, or 0.12%. They have traded in a 52-week range of $473.02 to $644.49. Volume today was 1,057,812 shares versus a 3-month average volume of 3,094,800 shares. The company’s trailing P/E is 21.85, while trailing earnings are $29.34 per share.
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