Google Inc. shares rose in premarket trading after the company's third-quarter results signaled that the Internet advertising market is experiencing a turnaround and that the search leader is set to be the prime beneficiary.

At least one analyst said the company's shares could hit $700 apiece, a level not reached since December 2007.

The Mountain View, Calif., company's results were "stellar," said Jefferies & Co. analyst Youssef Squali, lifting his price target on the stock to $600 from $470, and raising his earnings estimates for the company.

Canaccord Adams, meanwhile, raised its target by $140 to $700, saying YouTube results are improving and advertisers' budgets are likely to ramp up for the holiday season.

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