Google remedies to DOJ case ‘significantly positive,’ says Barclays

Barclays analyst Ross Sandler says Google’s proposed final judgment remedy package addresses about half of the issues raised around the exclusive default contracts highlighted by the court in the August 5 decision. The remedy package at first glance would be operating income accretive by 10%-plus, the analyst tells investors in a research note. Barclays believes the remedies are likely to reduce Google’s traffic acquisition cost rate on all distribution deals and retain 100% of commercial queries, a “significantly positive outcome.” The question now is whether the court goes with the suggested remedies or the Department of Justice’s, Barclays points out. The firm keeps an Overweight rating on Google parent Alphabet (GOOGL) with a $220 price target