UPDATE: Pivotal Research Group Downgrades Google to Hold on Valuation, Cost Risks

Pivotal Research Group downgraded Google

from Buy to Hold and maintained a $820.00 price target. Pivotal Research Group commented, "We are downgrading Google from BUY to HOLD with an $820 price target, primarily on valuation given the stock's recent run up and sustainment. We are also concerned around rising expenses. As we noted previously, for Google to achieve the advertising revenue forecasts we expect, growth will have to come from lower margin sources. Further, as Google itself reiterated in its 10-K last week, "the margins on advertising revenues from mobile devices and other newer advertising formats are generally lower than those from desktop computers and tablets. We expect this trend to continue to pressure our margins."" Google closed at $770.17 on Wednesday.