UPDATE: Maxim Group Initiates Baidu at Sell; China Search May Have Peaked

Maxim Group initiated coverage on Baidu

with a Sell rating and a $80 price target. Maxim Group commented, "With 80% revenue and 72% traffic shares in 3Q12, as well as stellar growth and margin expansion since its IPO in 2005, we believe the operations of China's dominant search engine may have peaked. With continued search penetration to the mass market, increasing mobile usage, rising competition, and an uncertain economy, BIDU may face difficulties achieving high growth while maintaining high margins." Baidu closed at $98.55 on Tuesday.