NEW YORK (TheStreet) -- TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, took a closer look at Yahoo! (YHOO) and Google (GOOGL) following the recent analyst rating change on Friday.
Bank of America/Merrill Lynch downgraded shares of Google from buy to neutral and lowered its price target from $600 to $580. Likewise, the analyst upgraded Yahoo! from neutral to buy and boosted its price target from $55 to $62.
On CNBC's "Cramer's Mad Dash" segment, he said this would have been a better call a few months ago, had the firm downgraded Google when it was trading above $600 and upgraded Yahoo! when it was trading in the low $30's.
And while the European Commission has been "a real pain in the butt for Google" in regards to its anti-trust concerns, investors should "be careful selling Google" due to its cheap valuation, Cramer reasoned. Management has been very cavalier and hasn't seemed concerned about the company's quarter-to-quarter performance.
Because Yahoo! had an early -- and large -- stake in Alibaba (BABA) , it will continue to ride the coattails of the stock's move higher. As for Google, Cramer said he has no plans to reduce or sell the stake held in the Action Alerts PLUS portfolio. Actually, he's actually looking to add to the position on a deeper pullback.