Google: Bernstein Cuts Estimates, but Says Shares Look Cheap

Google (GOOG) shares are too cheap.

At least, Bernstein Research analyst Jeffrey Lindsay thinks so. This morning, Lindsay trimmed his EPS estimates for Google and reduced his target price on the stock to $660 from $700. But he nonetheless contends that “even with the most pessimistic macro outlook we can engineer–a blighted global economy with perversely high oil prices–we conclude that Google is worth approximately $535/share and at current prices is over-sold.”

To reflect a softening economy, he cut his 2008 EPS estimate to $19.03 from $19.46; for 2009 he goes to $22.68, from $24.25.

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