Piper Jaffray Reports Google's Q1 Revenue Better Than Expected

According to Piper Jaffray, Google (NASDAQ: GOOG) Q1 revenue was better than expected.

Piper Jaffray reported that the bottom line is that shares of Google appear undervalued given the current ~14x multiple on FY12 PF EPS with 18% expected growth next year, but it continues to believe that investors are going to look at Google's future growth prospects with caution. “As search matures, Google's fast growing businesses like Android/mobile advertising, Display, and YouTube are still not big enough to meaningfully pull overall growth rates higher. We do believe new CEO Larry Page could be a catalyst for growth by aggressively investing in new products and/or acquisitions that could fuel growth, but expect compressed margins over at least the next three quarters.”

Google closed yesterday at $578.51.