UPDATE: SunTrust Initiates Google at Buy on Optionality

In a report published on Monday, SunTrust analyst Robert S. Peck initiated coverage on Google GOOG with a Buy rating and $1150 price target.

In the report, Suntrust commented, "Google's Optionality is Tremendous – Entering Bioengineering & Nano Manufacturing? – To correctly value companies in our universe, we prefer to look not only at the core businesses, but also the potential adjacent areas a company might expand into. We believe Google offers the most option value in our coverage, with potential expansion industries including Bioengineering and Nano Manufacturing. Core Businesses Remain Strong – The foundation of Google's core remains strong and it is what enables the company to explore new growth industries. Google continues to dominate search share and be a leader in display, video, mobile, and software applications. The network effects created powerful product extensions to provide a prolonged period of growth."

Google closed on Monday at $923.