Deutsche Bank Sets Expectations On Google Into 3Q14 Results; Reiterates Buy

In a research report issued to investors Wednesday, Deutsche Bank analyst Ross Sandler reiterated a Buy rating on Google inc. (GOOG) with a price target of $645, as the company is heading into third-quarter earnings results.

Sandler wrote, “Our overall view is that Google is as well-positioned as any for the on-going platform shift to mobile, with many new revenue lines vs. the PC era, and at 19x 2015 EPS vs. its 20% CAGR and other mega-cap techs, GOOG sits in a sweet spot. In the face of significant volatility, GOOG moves to the top of our list into year end. We expect 3Q results to largely be “in-line” with consensus, with Intl above and Domestic revenue a tad below. Shares have traded side-ways since the big move upward from the May lows and into I/O and 2Q14 results, which we view as a re-calibration of portfolios around recent IPOs and faster growing names vs. company specific, and overall market jitters.”

The analyst continued, “Unlike most consumer internet companies that will provide FX-impacted guidance for 4Q, Google’s backward looking results and call are likely to be largely upbeat. We continue to view Google as a must-own name in any Internet book, but in contrast to last year this time, don’t expect a dramatic move on 3Q results.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ross Sandler has a total average return of 9.3% and a 50.6% success rate. Sandler is ranked #271 out of 3332 analysts.

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