The increase of Google Inc.'s advertising revenue is expected to come back toward the end of the year, according to Canaccord Adams analyst Jeff Rath Tuesday, The Associated Press reported.

"Our recent checks suggest that ad budgets are coming back, particularly in e-commerce," said Rath in a note to investors. He increased his price target for the Internet company's shares from US$480 to $560.

In the second quarter, Google's revenue growth dropped to only 3 percent, as companies pinched their marketing budgets in the recession, according to the AP article posted on Yahoo Finance.

Rath gave a "Buy" rating on Google shares, and expected the third-quarter results to reach expectations. According to a poll by Thomson Reuters, Wall Street analysts expected the company to earn $5.34 per share, with revenue of $4.2 billion.

Google will releases the third quarter earnings next month. However, ad agencies considered it "the calm before the storm," predicting a growth in ad budgets of up to 20 percent in the fourth quarter versus the previous, according to Rath. He also said more advertisers are thinking shifting money from traditional TV and radio to the Web, the AP reported.

Google shares were up to hit a new 12-month high of $501.49 earlier Tuesday.