NEW YORK – Shares of Web search company Google Inc. (GOOG) hit fresh highs on Wednesday after a CSFB analyst report raised the company's price target and advised investors that the stock has "further to go."
Google's share price rose $12.05, or 4.35 percent, to $289.32 following the report from CSFB. CSFB raised its target to $350 from $275.
"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 30 percent in the process.
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), also rose in early trading on Wednesday. Yahoo was up 88 cents, or 2.37 percent, at $38.08 on the Nasdaq. Another Internet giant, eBay Inc. (EBAY) rose $1 to $39 a share.