Recovering from a two-week lull, shares in internet giant Google rose more than three per cent yesterday to finish trading at $648.54.The increase in share value comes after a broker set a target for the company's stock of $900, the highest of all Wall Street analysts.
Heath Terry of analyst firm Credit Suisse raised his target by $100, predicting that the search engine provider will benefit from the growth of digital advertising.
Google's proposed purchase of online advertising firm DoubleClick, which has been the cause of much controversy, will also raise its value, helping it to increase its success in the online display advertising market, he added.
Mr Terry stated that, over the coming years, Google will become "the defacto operating system for advertisers, providing them with the dashboard to monitor and optimise their advertising," thus creating immense value for shareholders, the Associated Press reports.
Meanwhile, in a note to investors, he added that Credit Suisse believes Google to be a "natural monopoly business ... that will continue to gain share until [it has] effectively reached 100 per cent", according to Reuters.
The news agency added that, on average, Wall Street analysts currently estimate that Google shares could trade at $761 in the next year.
Last month, Google's stock surpassed the $700 mark for the first time in the company's history. It had experienced falls more recently, however, following concerns over the slowing US economy.
