PACIFIC CREST Analyst rates GOOGLE a BUY even with lower results:
a. $3.90 billion second quarter net revenue was $15 million above
his forecast on upside in licensing revenue; $1.85 billion operating
income $27 million above his estimate on slightly better gross margin,
but EPS $0.01 is below his forecast because of a $90 million shortfall
in interest income.
b. paid-click growth stabilized, ending period of significant
deceleration resulting from changes in query growth and quality
improvements.
c. $615 target price and believes trends remain very strong and reflect market share gains and economic resliency.
Track his pick at:
http://www.trackthepros.com/categories.php?category_id=1258
STIFEL NICOLAUS Scott Devitt Recommends SELLING OVERSTOCK.COM:
a. Trades at 21 times 2009 EBITDA (before open), the highest multiple in the group.
b. The company had two consecutive quarters of mid-20% growth but it
faced easy comps that may normalize in the second half of 2008.
c. Expects mid-20% revenue growth could drop to low- to mid-teens by 2009.
d. Transitioned away from excess market two years ago and sells more
traditional retail merchandise in its current form. He says OSTK’s
model, while improved and stabilized, may never achieve operating
margins above 2%-3% at scale.
Track Stifel Nicolaus Analysts stock picks at:
http://www.trackthepros.com/categories.php?category_id=110