Google Inc (NASDAQ:GOOGL) Still a Buy: Nomura

In a research note issued today to investors, Anthony Diclemente reiterated his Buy rating on Google Inc (NASDAQ:GOOGL) and $640 price target.  According to Tip Ranks, Diclemente is ranked #745 out of 3450 analysts.  His recommendations yield an average return of 5.1% and he has a 59% success rate in the year following his stock ratings.

“While a separation could create headline risk and disruption for Google users on iOS platforms, we believe it would result in a relatively contained financial risk of roughly $2 to 2015E EPS of $29.17; applying our 22x target 2015E P/E multiple, this would result in a ~$47 (~7%) decrease in our $640 target price,” DiClemente said.

Of the 26 analysts offering recommendations on Google Inc (NASDAQ:GOOGL), the consensus rating is a Moderate Buy.  20 analysts rate the stock as a Buy while 6 have issued Hold ratings.  The one year price target on a consensus basis is $628.10, or around a 17.53% upside to a recently traded price.  The most bullish analyst has their estimate at $722, which the most bearish sees the stock going to $550.

Several top rated analysts according to which cover the stock include Brian Wieser of Pivotal Research and Doug Anmuth of J.P. Morgan.  Doug has a Buy rating on the stock with a price target of $600.00.  Wieser has a Buy rating with a price target of $610.00.

Some similar stocks include Baidu Worldwide, Yahoo and Yandex NV. Analysts have a consensus Strong Buy rating on Baidu, a consensus Moderate Buy rating on Yahoo and a Strong Buy consensus rating on Yandex NV.

Company Profile

Google Inc (NASDAQ:GOOGL) a technology company builds products and provides services to organize the information. The company offers Google Search, which provides information online; Knowledge Graph that allows searching for things, people, or places, as well as builds systems that recognize speech and understand natural language; Google Now, which provides information to users when they need it; and Product Listing Ads that offer product image, price, and merchant information. It also provides AdWords, an auction-based advertising program; AdSense, which enables Websites that are part of the Google Network to deliver ads; Google Display, a display advertising network; DoubleClick Ad Exchange, a marketplace for the trading display ad space; and YouTube that offers video, interactive, and other ad formats. In addition, the company offers Android, an open source mobile software platform; hardware products, including Chromebook, Chrome, Chromecast, and Nexus devices; Google+ to share things online with people; Google Play, a cloud-based digital entertainment store for apps, music, books, and movies; Google Drive, a place for users to create, share, collaborate, and keep their stuff; and Google Wallet, a virtual wallet for in-store contactless payments. Further, it provides Google Apps, which include Gmail, Calendar, and Google Sites, that are built for people to work anywhere, anytime, on any device without loss of security or control; Google Maps Application Programming Interface; and Google Earth Enterprise, a software solution for imagery and data visualization. Additionally, the company offers Google App Engine, a platform as a service offering; Google Cloud Storage; Google BigQuery for real time analytics; Google Cloud SQL for structured query language; and Google Compute Engine, an infrastructure as a service platform. It also offers mobile wireless devices, and related products and services. Google Inc. was founded in 1998 and is headquartered in Mountain View, California.