IPO Firms’ Analysts Boost Google Stock

The “quiet period” is over for underwriters of Google Inc. stock, and five of them weighed in on Tuesday with upbeat outlooks -- helping to drive the Internet search giant’s shares to a new high.

The stock jumped $8.60 to $126.86 on Nasdaq.

Federal rules governing initial public offerings required that analysts affiliated with Mountain View, Calif.-based Google’s sale refrain from commenting on the company for 40 days after the Aug. 18 IPO.

With that period ended as of Monday, brokerages including Morgan Stanley and Credit Suisse First Boston issued bullish reports on Google. Morgan Stanley analyst Mary Meeker rated the stock “overweight,” while CSFB’s Heath Terry rated it “outperform” and set a 12-month price target of $145.

“We believe that Google is well positioned to take advantage of the dramatic growth in the Internet in general and online advertising specifically,” Terry said in a note to clients.

Morgan Stanley and CSFB were co-lead underwriters of the IPO, which was sold to investors at $85 a share.

Among other brokerages, J.P. Morgan Chase rated the stock “overweight,” Thomas Weisel Partners rated it “outperform” and W.R. Hambrecht gave it a “buy.”