Google (GOOG) shares are trading higher after Bank of America/Merrill Lynch analyst Justin Post added the stock to the firm’s “U.S. 1″ high conviction list.

“Despite recent concerns on the strength of the recovery, which has helped pressure the stock, we believe Google remains an attractive macro-economic recovery plan and funds wanting increasing exposure to a recovery will be incremental buyers,” he writes.

Post says the stock ex cash trades for 14x 2011 estimated free cash flow, “attractive for a 15% grower.”

GOOG today is up $6.90, or 1.3%, to $538.19.