S&P Capital IQ Reiterates its HOLD Rating on Google, Target Price Raised

October 14 00:00 2011

New York, October 14 (RainbowNewsLine.com) – Analyst Scott Kessler of S&P Capital IQ has reiterated his HOLD rating on Google (NASDAQ: GOOG), while raising his estimates for the company. The target price has been raised from $500 to $625.

Scott Kessler of S&P Capital IQ, in a research note published this morning, mentions that Google reported its Q3 results substantially ahead of the estimates and the consensus. The company‘s Q3revenues rose 33% with a 39% increase from Google’s properties and 18% from third party offerings. Margins continued to improve during the quarter, driven by more favorable revenue mix, the analyst says. The analyst, however, says that the company faces risks associated with the proposed purchase of Motorola Mobility and Android market. The EPS estimates for 2011 and 2012 have been raised from $31.28 to $32.30 and from $38.41 to $40.50, respectively.

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