Firms raise price targets on Google (GOOG)

Raising price targets on a stock that is already at an all-time high can be a dangerous game. After earnings yesterday, Google (NASDAQ: GOOG) shares did not move up much after hours. Traders are worried that the company is hiring people too fast and that a recession could hurt even the great search company.

But intrepid analysts will not be dissuaded from thinking Google will do even better.

According to a survey by Barron's, several large firms raised price targets. Bernstein has pushed its price target from $625 to $720. Credit Suisse has moved its from $600 to $800. And Goldman Sachs has upped its ante from $620 to $900. Google now trades at about $640.

It would seem unlikely that any news, even the launch of a Google Phone, will push shares much higher if the Q3 earnings do not. But analysts do not want to be left out in the cold if the shares take off again. GOOG is already up 35% in the last month.

The risk is that big Wall Street firms are raising targets and chasing a future that is not there. Google is up against the same cost pressures and recession risks that may trouble many other companies.

Douglas A. McIntyre is an editor at 247wallst.com.