This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Google's Gallant Fan

Google (GOOG) got a boost from Wall Street on a day that saw renewed speculation that the stock might be vulnerable.

CIBC World Markets analyst Michael Gallant upgraded the search-engine phenomenon from sector performer to sector outperformer over the weekend and placed a $245 price target on the stock.

News of the report coincides with the reported expiration of the last and biggest lockup on insider stock sales at Google. On Monday, analysts calculated, theoretically up to 177 milllion of Google's 286 million shares outstanding could come on the market, though many of those shares are in the hands of senior executives and are unlikely to hit the market anytime soon.

Google's shares fell $1.25 Monday to trade at $186.15. The stock, priced at $85 a share in Google's initial public offering of stock six months ago, hit a high of $216.80 in early February, following release of the company's surprisingly good fourth-quarter earnings.

While Gallant's price target is by no means a Street-high estimate -- that distinction is the $275 target published by Credit Suisse First Boston and, separately, American Technology Research -- Gallant's report signals Wall Street's growing comfort with the financial performance of a prickly newcomer to the public markets.

Now that the company has gotten through two quarters' worth of financial statements, neither Google's rapidly rising stock price nor forecasts of runaway growth for the company seems as outrageous as it once might have.

In his report, dated Sunday, Gallant says the roughly 31% upside implied (at Friday's closing price) to his price target contrasts with a 9% risk to his expected floor for the stock of $170.

Behind the upgrade is Gallant's perception that certain risks posed to Google are diminishing, such as that represented by the biggest new entrant in the search business, Microsoft's (MSFT) MSN.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,091.67 -21.87 -0.13%
S&P 500 1,987.52 +3.99 0.20%
NASDAQ 4,473.6350 +17.6190 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs