all shorts.. please note the paragraph separated from the rest of this article in the center of this post...
Credit Suisse First Boston said that "bottom line," investors should be buying Google (nasdaq: GOOG - news - people ) at the current valuation "before what we believe is dramatic growth ahead for the online advertising industry." CSFB slightly raised estimates and said the Internet company will see three catalysts in February. The research firm expects Google to report strong fourth-quarter results after the close of trading on Feb. 1, and estimated operating earnings of 72 cents per share on revenue of $604 million. CSFB said Google's analyst day on Feb. 9 will also boost the stock, noting that the company "remains under-owned relative to the size of the opportunity and its peers. The analyst day represents the first time, other than their key note at our December Tech Conference, the company will meet with investors in detail since the IPO. We believe that this has been one factor keeping investors on the sidelines."
The firm said the final lock-up expiration for Google is Feb. 14 and while it is the largest at 177 million shares, the impact will be "negligible" because "a significant percentage" of the shares will remain locked up by the company's own vesting schedule and senior management's structured selling plans. "We believe that getting past this lock up will remove a significant risk factor from the minds of investors," CSFB said.
Google, which the firm rates at "outperform," remains attractive based on valuation trades a discount to Yahoo! (nasdaq: YHOO - news - people ), eBay (nasdaq: EBAY - news - people ) and Amazon.com (nasdaq: AMZN - news - people ) based on 2006 enterprise value/earnings before interest, taxes, depreciation and amortization multiples, CSFB said. The firm raised the fiscal 2004 earnings estimate to $2.26 per share from $2.19, and raised the fiscal 2005 estimate to $3.01 from $3.00.
yo_ace: good point. but they mean more investors may jump in. i dont know/doubt that :-)
needless to say all analysts pump this. whole mkt wants it up and will keep it up for some time to come (may be another year when growth reduces/competition is more fierce). short-term indicators are "pump"ish :-)