Canaccord Internet tech analyst Michael Graham initiated equity research coverage on Google (GOOG) and lauded the company’s “Robust Growth” and “Compelling Valuation.” Mr. Graham has a $725 price target on GOOG shares. In a note to investors, Mr. Graham said:

“Google still offers stable exposure to the most durable trends in tech: Internet usage, online advertising and commerce, smart phone penetration, mobile commerce, and social networking. We expect strong growth and profitability, and believe this will warrant a stable or higher multiple, especially if mobile monetization improves.”

Of the macro setting, he added, “We believe that what is ultimately counted as ‘Internet’ advertising will likely include money spent reaching consumers doing many social and mobile activities . . . As the starting line for much of the online activitythat occurs, Google should be well positioned to continue to benefit from this.”