Oppenheimer analyst Jason Helfstein this morning repeated his Outperform rating on Google (GOOG) heading into the company’s July 15 earnings announcement, while cutting his target on the stock to $600, from $715, and trimming earnings estimates.
Helfstein raised his expectations for results from the U.S. market, while reducing his outlook for international growth; the result is a reduction in his overall numbers, although he is sticking to his view that management will drive double-digit EPS growth over time.
The analyst says cost-per click trends appear to be better than expected, and U.S. paid click trends also seem to be improving. But he has trimmed his forecast for international revenue growth to 20% for the June quarter from 25%; for the second half he sees growth decelerating to 15%, down from his previous forecast of 25%. He sees a hit from FX of 3% in the second quarter and 10% in the second half.
Helfstein cuts his 2010 pro forma EPS outlook to $27.39, from $28.48; for 2011, he now sees $31.50, down from $33.34, and for 2012 he goes to $36, from $39.
GOOG this morning is up $1.47, or 0.3%, to $451.67.
Deja vu? The Oppenheimer call is similar to the one J.P. Morgan made yesterday.
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