UPDATE: Morgan Stanley Raises PT on Google on Rising Valuation of YouTube

In a report published Wednesday, Morgan Stanley analyst Scott Devitt reiterated an Overweight rating on Google

, and raised the price target from $932 to $996. In the report, Morgan Stanley wrote, "We believe that Google has been aggressively courting video advertising dollars, and calculate that YouTube's revenue currently totals about 1.5% of WW TV ad spending. If it captures an amount equivalent 6% by 2020, YouTube may generate gross revenue of $20b and operating income of $5b." Google closed Tuesday at $887.10.