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 GOOG.O closed at another record high on Wednesday after an analyst report raised the c"> |
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Google shares surge to new highs after stock report NEW YORK (Reuters) - Shares of Web search company Google Inc. (GOOG.O: Quote, Profile, Research) closed at another record high on Wednesday after an analyst report raised the company's price target and advised investors that the stock has "further to go." Google's share price rose $10.73, or 3.9 percent, to close at $288.00 on Nasdaq following the report from CSFB, which raised its target to $350 from $275, the highest among Wall Street firms. "While there will certainly be plenty of volatility in the stock price ... we believe shares have further to go given the momentum in the company's core advertising business, the growing impact of new business like Gmail, Froogle and Local, and a valuation that, relative to the company's growth rate, is far from stretched," CSFB's note said. Google, which debuted last August in the most highly anticipated initial public offering in recent memory at $85 a share, has set a series of new closing records over the last month, rising some 30 percent during the month. At the moment, price targets range from a low of $210 to a high of $350. And of the 30 analyst ratings compiled by Reuters Estimates none list Google as a sell -- meaning Wall Street generally sees support for the company's stock despite its high valuation. One reason for bullishness about Google is Internet advertising. U.S. Internet advertising surged 33 percent in 2004 to a record $9.6 billion -- topping dot-com boom levels -- and is forecast to rise some 34 percent in 2005 to $12.7 billion. Google has been a prime beneficiary of that growth, as evidenced by a recent quarterly profit report that showed surging ad revenue. Shares of its closest publicly traded comparable competitor, Yahoo Inc. (YHOO.O: Quote, Profile, Research) , also rose on Wednesday. Yahoo rose $1.22, or 3.3 percent, to close at $38.42 on Nasdaq. Another Internet giant, eBay Inc. (EBAY.O: Quote, Profile, Research) rose $1.11 to close at $39.11 a share. Trading in Google's options was also heavy on Wednesday, particularly call options, as investors bet on continued gains on the Internet stock. "I believe Google shares will surge through $300 within the next two days given the panic buying in the options," said Jon Najarian, chief market strategist at PTI Securities and Futures, an online stock and options brokerage.
http://www.microsite.reuters.com
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