Tuesday, February 17, 2009

Google (NASDAQ:GOOG): Downgraded to Source of Funds - ThinkEquity

ThinkEquity is downgrading Google (NASDAQ:GOOG) to Source of Fund from Accumulate noting the shares are up 27% in the past three weeks (versus S&P up 3%) and are currently reflecting a 2H09 recovery that they believe is unlikely to materialize.

Firm's research suggests that paid clicks and CPCs have continued to deteriorate in the first half of Q1. They are now expecting 3.8% Y/Y growth in net revenue (0.6% for gross) versus the Street consensus at 10.3%. Think's PF EPS estimate is now $19.85 versus consensus at $21.20. As investors come around to their point of view, the firm expects to see multiples contract and the stock to fall into the $300 range.

Notablecalls: Wanted to let you know this one was out there. Looks like sub-$350 is in the cards for the stock.

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