UPDATE: Citigroup Reiterates Buy Rating on Google, Lowers PT

In a report published Friday, Citigroup reiterated its Buy rating on Google

, but lowered its price target from $850.00 to $800.00. Citigroup noted, “In terms of Investment Highlights, Google should benefit from: 1) strong secular growth in online advertising; 2) direct exposure to search, the most robust online ad segment; 3) clear market leadership; 4) under-appreciated potential for expansion beyond traditional search; and 5) the strongest outlook fundamentals in the sector. In terms of Investment Risks, Google faces: 1) Increase in operating expenses from new hires, increased marketing expenses, and legal fees; 2) Competition from Facebook, Twitter, daily deal sites, as well as from Apple, Microsoft and Yahoo!; 3) Antitrust concerns by the EU and possibly the FTC; 4) Large cash balance with increasing scrutiny on acquisitions; and 5) Greater risks as Google moves into non-core markets such as mobile operating systems, PC operating systems, tablets, social networking, display advertising, etc.” Google closed on Thursday at $695.00.