The firm decided to take the half-full glass view on Google.
The company "operates in a growing ecosystem as online continues to take 2pp of the overall global ad pie every year, underpinning growth impressive for a company this size both at the revenue and earnings per share level," according to the analyst note.
On the other hand, the company is losing share within the online ad pie, consequently underperforming the other U.S. ad-supported online mega-cap Facebook (FB). Google is also facing rising regulatory pressure in Europe and its margins have flattened due to continued investments, analysts said.
Despite these risks, analysts remain bullish, given that valuation multiples are broadly in line with European and Global Media.
Separately, TheStreet Ratings team rates GOOGLE INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOOGLE INC (GOOGL) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."