Google (Nasdaq:GOOG) Should Beat 4Q Revenue Growth Projections

Citing input from leading SEMs Efficient Frontier and Rimm-Kaufman Group, Barclays (NYSE:BCS) says they see Google (Nasdaq:GOOG) at minimum meeting, but probably beating, their 4Q revenue estimates.

Barclays said, "Our search industry conference call with leading SEMs Efficient Frontier (EF) and Rimm-Kaufman Group (RKG) on Wednesday suggests that 4Q domestic search trends are strong and makes us incrementally confident that Google will meet or beat our 10.8% Q/Q net revenue growth projection for 4Q10. We believe Google remains a key beneficiary of strong holiday spending trends and Google is well positioned in 2011 to drive further pricing and volume growth while also realizing incremental lift from mobile and display.

"2011 outlook: EF projects domestic CPCs to grow 12-15% in 2011 and for search advertising to grow 15-20%...Both SEMs reported holiday spend has been strong with demand pulled forward this year.

"Despite favorable comments from Microsoft (Nasdaq:MSFT) on the YAHOO! (Nasdaq:YHOO) partnership, both SEMs suggested the early integration has been choppy, particularly among large advertisers, & 2011 search spending gains would be difficult. However, we believe greater scale & better search technology should drive RPS improvements for Yahoo! going forward.

"Facebook likely to be a key focus for advertisers in 2011 with spend largely coming from print budgets; Mobile CPCs and monetization remain low, despite strong volume."

Barclays maintains an "Overweight" rating on Google, which closed Thursday at $591.71, up $1.71, or 0.24 percent. Barclays has a price target on them of $675.