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Technology Stocks : Google - Moderated - Information and discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (98)	9/12/2006 4:38:44 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 348

Who is AC research? Google upgraded to "buy" Monday, September 11, 2006 1:11:49 PM ET AC Research NEW YORK, September 11 (newratings.com) – Analysts at AC Research upgrade Google Inc (GOOG.NAS) from "hold" to "buy." The 12-month target price is set to $460. According to AC Research’s research note published this morning, in the course of only eight years of corporate history, the company has developed into the largest internet search engine worldwide. Google’s outstanding success may above all be attributed to the PageRank search algorithm used. With this method the system may, within split-seconds, provide the most relevant hits for practically every query. While in its early days Google operated as a pure search engine, the company has continued to expand its product pipeline by new additional services, such as the product search engine, Froogle, and the satellite mapping tool, Google Earth. Till now, Google has realized its sales almost completely via advertising, the analysts mention. Since search engines have turned into the central medium for finding new information on the internet and, at the same time, permit optimized advertising through specific forms of advertising, AC Research says it is rather likely that Google, due to its outstanding market position, will continue to show considerably higher growth rates in the future than the entire internet advertising market, which also gains more and more significance in the media mix. Plans by Microsoft to incorporate its MSN Search service as a fixed component in the new Windows Vista operating system are currently considered as a major risk factor, the analysts add. In the worst case scenario, this could lead to a substantial loss of market shares for Google. However, due to the popularity Google has achieved up to this date, this risk is considered as rather limited, according to AC Research.Google’s stock was rated using two different models of evaluation, the analysts mention. In the scope of a peer group comparison, AC Research established a fair value of $528.13 per share. In the scope of its DCF model, AC Research established a fair value of $410 per share. Establishing the 12-month target price, the analysts weighted the result of the peer group comparison with 40%, and the result of the DCF model with 60%. Therefore, the 12-month target price is set to $460. Based on the company’s current share price of $378.60, Google’s stock offers a 21.5% potential for price gains.AC Research upgrades Google Inc from "hold" to "buy." newratings.com