Analyst Sees Google (GOOG) Headed Higher

Analyst for Broadpoint AmTech, Ben Schachter raised his price target on Google (NASDAQ: GOOG) by $40 to $650 based on new advertising formats being rolled out by the company in response to increased competition.

Google is now using new advertising techniques, such as adding a movie trailer to searches for a certain film, as well as ads that compare promotions for a product or service when a related search is conducted. The company is also including more images, video, maps and links to its ads.

These actions by Google are due to increasingly competitive content coming from rivals Amazon.com Inc.(NASDAQ: AMZN) and eBay Inc. (NASDAQ: EBAY) among others. For now the ads are being seen in the U.S. exclusively and will be made available to users around the globe in the future.

Schhachter said that the current implementation of the new ad services are likely to be altered as the company aims to increase revenue streams without alienating the user from employing the service.

The fourth-quarter earnings forecast for Schachter by 2 percent to $4.91 billion, and $6.74 per share. His 2010 earnings outlook is now $27.47, up from $26.69.

Shares for Google are at $583.00, up 0.56 percent at the market close.

For more on the report click here.

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