Munster Warns Street Estimates on Baidu Too Bullish, Says to Hold Off on Buying Until After Q4 Report

Piper Jaffray's Gene Munster believes Wall Street expectations on Baidu (NASDAQ: BIDU) may be getting a bit too lofty.

In a research note Monday, Munster said analysts may not be account for increased investment in Baidu's Union segment. The analyst also noted a likely negative impact from the consolidation of QiYi. Munster is modeling for QiYi to lose money for Baidu this year and potentially into next year.

Munster currently sees Baidu reporting FY13 GAAP earnings of $5.41/share. The Piper analyst said Street expectations might be reset following the company's Q4 report on Feb. 4th.

Munster maintains an Overweight rating and $146 price target on shares of Baidu.

The stock is up around 0.4 percent to $108.40 in pre-open trade Monday morning.

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