Google Pulled From Goldman Conviction List; Still Buy Rated
Goldman Sachs analyst James Mitchell this morning removed Google (GOOG) from the firm’s Conviction Buy list, “due to recent underperformance following in-line Q1 results.” But he maintains his Buy rating on the shares, asserting that they “are attractive” at around 16x his 2011 EPS forecast of $33.92. He maintains his $680 price target on the shares.
Mitchell says he thinks the company can sustain a mid-teens revenue growth rate for the next 3-5 years given a nine percent compounded growth rate in paid leads, a three percent annual rise in price per click, a two percent contribution from display and a one percent contribution from other activities.
