UPDATE: Goldman Sachs Ups Target to $19 on AOL

Goldman Sachs remains Neutral-rated on AOL (NYSE: AOL) and raises its price target to $19 from $15 on improved fundamentals and despite persevering traffic concerns.

Goldman Sachs says, "AOL is hitting key inflection points including improving profitability in the media business, return to FCF growth, and moderating revenue declines. The company indicated a potential return to revenue growth for 2012 which would imply a material acceleration in display from the 4% in Q4 and continued moderation of declines in the subscription business. While the current growth trajectory of the display business, particularly in video (50%+ growth in Q4), and management's focus on user growth and technology advancement are encouraging, the question of sustainability, particularly in subscription revenues remains key."

AOL closed at $17.96 a share yesterday.