J.P. Morgan Cuts Google Price Target By $73
In eight days, Google will give its second quarter financial report, and at least one group of analysts seems to think bad news is inevitable. J.P. Morgan cut its forecasts in several respects this morning, with the most dramatic reduction being a $73 chop in Google’s price target.
J.P. Morgan’s Imran Khan, speaking on behalf of his company, stated according to Henry Blodget, "We are now modeling 2Q revenue and EPS of $4.92B and $6.38 vs. our prior estimates of $5.07B and $6.61. We are also reducing our price target to $566 from $639 given our lowered estimates."
All of which seems bound to upset some people. Historically, Google’s been a company more or less capable of printing its own money; sudden lurches towards a slower growth rate can’t go over well with investors.
Still, the cuts come due to the discontinuation of the Nexus One, which is in Google’s past, and the weakness of the Euro and pound, which is out of its control. So it’s not like anyone discovered Google’s data centers are a week away from melting down.
J.P. Morgan even kept its "overweight" rating on Google, too.
Finally, for what it’s worth, things are even going pretty well for Google’s stock on the market today. At the moment, it’s up 1.61 percent, while Yahoo and Microsoft are only up 0.98 percent and 0.76 percent, respectively.