Trading Technical Analysis
November 19, 2009
Google: UBS Ups Estimates, Boosts Target To $700; Sees Stronger Keyword Pricing
UBS analysts Brian Pitz and Brian Fitzgerald this morning repeated their Buy rating on Google (GOOG), while lifting their price target on the stock to $700, from $635. GOOG closed yesterday at $576.65.
The UBS duo also boosted their 2009 EPS estimate to $22.93, from $22.74; for 2010 they now see $27.72, up from $27.08. For Q4, they now expect $6.63, up from $6.44, and ahead of the Street at $6.39.
The analysts say the higher estimates reflect improving keyword pricing. “Our proprietary price tracking and channel checks with several SEMs (search engine marketing companies) and industry participants suggest CPCs (cost per click, or keyword pricing) particularly in categories such as retail witnessed strong growth in October from September and Q3 levels,” they write.
GOOG today is down $4.90, or 0.9%, to $571.75.