Analyst reduces price target to $566 from $639 on lowered estimates.
JP Morgan's Imran Khan sent a note out ahead of Google's (GOOG) Q2 financials stating that they were dropping their price targets on Google significantly, from $639 to $566. The $73 drop is largely due to changes in international currency rates and the discontinuation of the Nexus One, according to the report.
The US Dollar has been steadily growing stronger for months and Google announced that it would discontinue selling its Nexus One handset online in May so it isn't certain why JP Morgan is revising its Google forecast today.
They are now modeling 2Q revenue and EPS of $4.92B and $6.38, below prior estimates of $5.07B and $6.61.
Google is up 7 points today to 443 as of 11m ET (right).
More rationale from Khan below the fold:
|Bernanke warns against hitting the brakes too soon|
|Insanely durable smartphone ... from Caterpillar?|
|Stocks pop as Bernanke eases fears|
|Home sales continue to climb|
|Memorial Day travel to dip this year|