Deutsche Bank Performs Channel Checks on Baidu.com

Deutsche Bank has published a research report on Baidu.com BIDU that commented on the company's channel checks as compared to Qihoo 360 Technology QIHU. In the report, Deutsche Bank wrote, "Our recent round of channel checks suggests that Qihoo's search share increased slightly (1-2pp) since our last round of channel checks on Aug 27. We found Qihoo's traffic share gain mostly coming at the expense of Baidu. We estimate Baidu and Qihoo's market share to be 75-80% and 5-10% respectively vs. 80-85% and 0% prior to Qihoo's search engine launch. Although Qihoo gained search traffic share across a broad range of websites, its traffic share remained slightly below the first peak on 21 Aug among 40% of our surveyed websites. We attribute the rebound in Qihoo's search share to the conversion of more Qihoo browser users to Qihoo's search engine." Deutsche Bank maintained its Hold rating and $137 price target on Baidu.com, which is currently trading down 1.80 percent from Monday's $113.31 closing price.