Piper Sees Google at $600

Hopes are higher for Google(GOOG Quote) in 2006.

Piper Jaffray jacked up its price target on the stock Tuesday to $600 from $445, saying the search engine is its top large-cap pick in the new year. The $600 forecast is 50 times Piper's new pro forma 2007 earnings estimate of $11.91 a share. Its old forecast applied the 50 multiple to a 2006 pro forma estimate.

"Although such a high multiple may seem aggressive, we believe that given Google's dominant position in an already large yet still rapidly growing market, its phenomenal brand power, and its status as a technology leader justifies such a valuation," Piper said. The brokerage also predicted that 2007 earnings estimates will rise this year. ...