Wedbush Morgan analyst Lou Kerner raised his rating on Google to Outperform from Neutral
In a research note today, Kerner wrote: We are raising our rating and price target on Google based on our belief that mobile and social secular trends are accelerating the growth of time spent online and the growth of global searches. Coupled with the increasing global domination of Android, strong moves in local, rapid market share gains by the Chrome browser, and the potential of Chrome OS, we believe Google is remarkably well positioned to benefit from the major secular trend of our times — the digitization of human life. We are raising our rating and price target on Google based on our belief that mobile and social secular trends are accelerating the growth of time spent online and the growth of global searches. Coupled with the increasing global domination of Android, strong moves in local, rapid market share gains by the Chrome browser, and the potential of Chrome OS, we believe Google is remarkably well positioned to benefit from the major secular trend of our times — the digitization of human life. Google’s core search and advertising business also appears to be running on all cylinders. Kerner notes areas where Google is beating the field… Kerner addresses the Facebook “headwind” by noting that they haven’t yet ventured into search. He sees Facebook as a long term threat, though both Google and Facebook will need to be interdependent. Kerner raised current quarter revenue estimates to $6.2 billion and EPS to $8.21.
Google’s (GOOG) efforts in Mobile and OS/Browser markets will start to pay off, according to Wedbush Morgan analyst Lou Kerner.