UPDATE: Bank of America Upgrades Google to Buy; Valuation Multiple Expanding

Bank of America upgraded Google

from Neutral to Buy and raised the price objective from $790.00 to $920.00. Bank of America said, "While sentiment on Google has already turned the corner, we are less concerned on the mobile usage shift (tablet CPCs should soon be on par with PC) and see opportunity for ex-FX revenue acceleration and multiple expansion in 2H due to: 1) improving mobile ad pricing driven by the Enhanced Campaigns rollout; 2) potential CPC and revenue uplift from Product Listing Ads maturity; 3) potential Motorola product launch excitement in 4Q; and 4) eBay's 2012 multiple expansion, which sets a positive precedent (despite a +12% YTD move, Google at +16% since our Oct. downgrade has underperformed FB & the large cap. Internet group at +25%)." Google closed at $790.13 on Tuesday.