Oct. 5 (Bloomberg) -- Google Inc. shares will reach $700 by the end of next year as the company lures more users to its YouTube video site and companies shift advertising spending to the Web, Bear Stearns & Co. said.

YouTube's U.S. visitors may almost triple to 83 million by 2012, when more than a third of Web users will watch videos on the site, analyst Robert Peck wrote today in a note to clients. Banner and video ads will lift revenue almost ninefold to $277 million that year from $30.6 million in 2007.

Peck is the second analyst to put a price target of $700 on Google, owner of the most popular Internet search engine. Net sales at the Mountain View, California-based company may almost double to $19.3 billion by 2009 as it fends off competition from Yahoo! Inc. and Microsoft Corp., New York-based Peck wrote.

Peck, the third-ranked Internet analyst according to Institutional Investor magazine's 2006 survey, also lifted his 2007 year-end price target to $625 from $550. He rates the shares ``outperform.''

Google, which began trading at $85 in 2004, rose $15.02, or 2.6 percent, to $594.05 at 4 p.m. New York time on the Nasdaq Stock Market. The stock had added 29 percent this year.

The company is also selling print and radio ads to expand beyond its Web business, efforts that may yield ``significant financial rewards,'' Peck wrote.

Net revenue at the print business may reach $104.9 million by 2012, while net sales in radio may reach $2 million over the same span, Peck said.

To contact the reporter on this story: Ville Heiskanen in New York at vheiskanen@bloomberg.net.

Last Updated: October 5, 2007 16:13 EDT