×

Jefferies Raises Google Estimate

graphic_fast_money.jpg

It seems investors are growing more bullish on Google ahead of its earnings Thursday. Why the surge in optimism?

It’s partly due to a positive note out Monday from Jefferies which said, Google should meet or top expectations.

Analyst Youssef Squali, who has a "Buy" rating on the stock, raised his price target to $465 from $442 citing growth in paid clicks and steady ad pricing.

Symbol
Price
 
Change
%Change
GOOGL
---

Squali said his checks suggest a domestic growth rate in paid clicks - Web users clicking on ads - of 20 percent to 25 percent year-over-year in May and April. He said ad pricing trends did not improve in the second quarter, but "they have not deteriorated either."

So how should you play Google, now?

If April and May are any indication traffic looks massive, says Squali. I’d go into the quarter owning the stock.


______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On July 13th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (GE) Calls; Najarian Owns (GS) Call Spread; Najarian Owns (INTC) Call Spread; Najarian Owns (JPM) And Is Short (JPM) Calls; Najarian Owns (MFE) Calls; Najarian Owns (MS) Call Spread; Najarian Owns (NVLS) And Is Short (NVLS) Calls; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO) Call Spread; Finerman's Firm Owns (MSFT); Finerman's Firm Owns (BAC) Preferred Shares, Finerman Owns (BAC) Preferred Shares And Is Short (BAC), Finerman Owns (BAC) Preferred Shares And Owns (BAC); Finerman's Firm Owns (WFC) Preferred Shares And Is Short (WFC), Finerman Owns (WFC) Preferred Shares; Finerman's Firm Owns (YUM); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (IYR), (USO); Seymour Owns (AAPL), (BAC), (EEM), (FXI); Adami Owns (AGU), (C), (GS), (MSFT), (INTC), (NUE), (BTU); Finerman's Firm Owns (HPQ); Najarian Owns (JNJ) Calls; Finerman's Firm And Finerman Own (PDE); Najarian Owns (V) And Is Short (V) Calls

GE Is The Parent Company Of CNBC
NBC Universal Is The Parent Company Of CNBC

For Yousef Squali:

Jefferies Is A Market Maker In (GOOG)



CNBC.com with wires