S&P revises Google stock status a week after downgrade
23 Aug 2011
Standard & Poor's downgraded Google's stock about a week back, but a neat backtrack, said the stock price had taken so much battering that it was now a more attractive buy.
Scott Kessler, head of technology sector equity research at S&P, wrote in a research note issued today and cited by the Associated Press that he had been upgrading the web search giant's rating to "hold" from the "sell" rating of last week following Google's bold acquisition initiative which netted it Motorola Mobility for $12.5 billion. With the acquisition Google will get its hands on patents that could protect Android from intellectual-property lawsuits.
Kessler issued the controversial downgrade on 16 August, over concerns that Motorola's portfolio would not in fact insulate Google from IP issues. Google's stock was downgraded by S&P equity researchers from a "buy" to a "sell" and lowered the share price target of the company from $700 to $500.
According to Kessler, he still continued to have concerns about the deal, however, Google's stock was now "fairly valued" after the 20 per cent fall of the past month.
Google shares were up at $7.25, or 1.5 per cent, to $498.17 during regular trading today.
