CSFB Gaga Over Google

The Google (GOOG Quote - Cramer on GOOG - Stock Picks) bandwagon got another shove on its merry way down Wall Street.

Credit Suisse First Boston raised its price target to $475 from $400. The firm became the fifth to raise the stakes on the red hot search engine stock since it first closed above $400, back on Nov. 17.

"We believe that the momentum behind the online advertising market is accelerating," wrote Credit Suisse analyst Heath Terry, who has an outperform rating on Google. "Based on our proprietary survey of chief marketing officers on a quarter over quarter basis Internet spending as a percentage of planned budgets has gone from 17% in the September survey to 23% in December."

Credit Suisse's price target values the stock at 29.1 times CSFB's 2006 estimate of enterprise value-to-earnings before interest, taxes, depreciation and amortization. That's higher than other large-cap Internet companies such as eBay (EBAY Quote - Cramer on EBAY - Stock Picks), Yahoo! (YHOO Quote - Cramer on YHOO - Stock Picks) and Amazon.com (AMZN Quote - Cramer on AMZN - Stock Picks).

Google will also be able to realize additional revenue through its nonsearch products including gmail, Froogle and local search, Terry wrote.

Google, which is based in Mountain View, Calif., will make $1.62 a share, excluding certain costs, on sales of $1.97 billion in the fourth quarter, according to Credit Suisse. Next year, Credit Suisse estimates that Google will earn $8.88 a share on revenue of $7 billion.

Last week, Pacific Crest Securities analyst Steven Weinstein raised his price target on Google to $500 from $400. Analysts at Bank of America, Citigroup and UBS have also increased their estimates for the potential value of Google's stock.

Shares of Google have more than doubled over the past year. The company went public last year at an initial public offering price of $85. They rose $3.70 to $412.90 at midday.

Google, which has been snubbed by the S&P 500 Index, is to become a part of the Nasdaq 100, the index of the top nonfinancial stocks on the exchange, starting when the market opens next Monday.