UPDATE 1-Goldman Sachs removes Google from conviction buy

* Goldman maintains "buy" rating on the stock

* Sees growth from global search and display ads

* Expects Google to sustain mid-teen revenue for 3-5 yrs

April 27 (Reuters) - Goldman Sachs removes Google Inc (GOOG.O) from its Americas conviction buy list, citing the Internet search company's recent underperformance following its in-line first-quarter results.

Shares of the company fell about 1 percent to $527 in trading before the bell, after closing at $531.60 Monday on Nasdaq.

The stock has shed 10 percent of its value since reporting results earlier this month. The company had posted a 23 percent jump in quarterly revenue, but the numbers disappointed some investors accustomed to blowout results.

Goldman Sachs analyst James Mitchell, however, maintained his "buy" rating on the stock as he expects the search giant to sustain a mid-teens revenue growth rate for the next three to five years.

Mitchell added that he expects Google to grow not only from global search penetration but also from gaining market share in the display advertising business.

"We believe Google can succeed dramatically in display because Google's portfolio of AdSense for content display, YouTube, and DoubleClick Ad Exchange enables it to apply its algorithmic scale and to target advertisers of all sizes and intentions," Mitchell said.

"We believe improving margins on desktop search can offset margin dilution from display, and that mobile search may generate lower EBITDA but comparable free cash flow margins to desktop search."

Mitchell maintained his six-month price target of $680 on the stock. The mean price target of 37 analysts covering the stock is $672.67, according to Starmine data. (Reporting by Juhi Arora in Bangalore; Editing by Saumyadeb Chakrabarty) ((juhi.arora@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:juhi.arora.reuters.com@reuters.net))