Google Inc. was upgraded to overweight from neutral at Atlantic Equities on Wednesday on recent improvements in mobile search and the potential for YouTube to serve as a "material growth driver" as advertising dollars continue to shift from traditional TV. Analyst James Cordwell also raised his 12-month price target on the stock, to $825 from $560, making him one of the most bullish analysts among a poll of 40 analysts on FactSet. The average target on Google's stock is $763.30, according to FactSet. Cordwell's previous bearishness was related to questions surrounding the company's ability to successfully transition its desktop search product to mobile. However, resilient revenue growth from Google websites suggests the company is "navigating this transition better than anticipated," he said. The analyst is modeling for a more than 50% annual increase in YouTube revenue from 2015 to 2017. Shares of Google were up 0.4% to around $691.44 in premarket trade Wednesday. Its shares have surged more than 25% over the last three months, outperforming the broader S&P 500, down 1.5%.
Copyright © 2015 MarketWatch, Inc.
Continue Reading Below