UBS Reiterates Google (GOOG) Buy Rating

UBS analysts Brian Pitz, Brian Fitzgerald and Kaizad Gotla reiterated their Buy rating for shares of Google Inc. (Nasdaq: GOOG), with a price target of $700.

The UBS analysts ran three DCF scenarios resulting in a $12 to $26 per share range for Google China. Because Google Inc shares have lost $28 in value since the company announced it would stop censoring results in China, the analysts believe that the market has already priced in a worst case scenario for Google's stock.

The UBS analysts wrote, "we believe it is still early to determine the impact to GOOG’s fundamentals from recent events in China. For one, it is unclear if Chinese authorities will block Google.com.hk’s web search. Moreover, we see market share losses for Google.com.hk if Google.com.hk’s service appears slower or intermittent, relative to mainland China-based rivals such as Baidu. Our estimates do not include these market share losses as we await further clarity on Chinese authorities’ next move."