CSFB Raises Google Target

Analyst Heath Terry says the internet search engine's shares have further to go considering momentum in ad business, and growing businesses like Gmail, Froogle, and Local

CS First Boston raises internet search engine Google's (GOOG ) price target to $350.

Analyst Heath Terry tells salesforce shares reached its $275 near-term target.

He says while there will certainly be plenty of volatility in stock price, particularly over what is supposed to be slower summer period, he believes shares have further to go given momentum in the company's core ad business and the growing impact of new business like Gmail, Froogle, Local, and valuation that, relative to company's growth rate, is far from stretched.

Therefore, Terry raises his 12-month discounted-cash-flow based price target from $275 to $350, about 30 times 2006 EV/EBITDA. He keeps his outperform rating.

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