Google Upgraded To Buy As Fund Flows Return

Google was upgraded to buy from neutral at Bank of America Merrill Lynch on Monday, amid growing investor interest in the stock. Analyst Justin Post boosted Google's stock price target to $650 from $580, saying Google might currently be undervalued on spending concerns. Post said fund flows have started to return to Google after the stock significantly underperformed rivals Apple Inc. , Facebook Inc. and Microsoft , and that negative sentiment could be offset by new product momentum. Risks include a deceleration in the first quarter due to currency headwinds, which have plagued many U.S. companies this year, and slowing search growth. Shares of Google closed up 2.2% to $575.02 on Monday and were inactive in premarket trade. The average rating on the stock is buy, according to a poll of more than 40 analysts on FactSet. Also on Monday, Google confirmed plans to launch a wireless network.