Last week Standard & Poor’s took Google down a peg after it announced a $12.5 billion acquisition with Motorola Mobility by downgrading Google’s stock from “buy” to “sell” and lowering its target price from $700 to $500. When Google’s price dipped below that Target, S&P reversed course.

According to the AP, S&P has upped Google’s rating to a “hold.” An analyst now calls the stock “fairly valued.”

It remains to be seen whether the U.S. government can realistically hope for a similar reversal of its own downgrade when it meets with S&P next month.

S&P backtracks on Google downgrade [AP via CBS Money Watch, CNET]

Previously: Standard & Poor’s Zaps Google With Downgrade Ray

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.