Credit Suisse set Google target new high $900

"We believe that search is a natural monopoly business and expect that over time Google will continue to gain share until they have effectively reached 100 percent," Credit Suisse analyst Heath Terry advised investors in a note on Tuesday.

Credit Suisse raised its target on Google Inc to $900 from $800, citing anticipated growth over the next five years in online advertising by corporate brands and local marketers and ads on mobile phones.

These are natural extensions of Google's vast business delivering text ads alongside Web search results, Terry said.

Over time, Google will become 'the de facto 'operating system' for advertisers, providing them with the dashboard to monitor and optimize their advertising,' creating 'tremendous value' for stockholders, he wrote.

Google should benefit from increasing market share gains as its mounting scale makes it more difficult for rivals to justify the heavy investments in technology necessary to keep pace in the search market. Google's search business can grow 38 percent a year over the next five years, Terry forecast.

In the last few years, Google has gained a percentage point of Web search market share every two months, implying an ever-growing audience for its ad business, Terry said.

Credit Suisse forecast the U.S. online advertising market would grow 27.5 percent in 2007 and 28.3 percent in 2008.

So we can see 4Q result to be Good