UPDATE: Credit Suisse Reiterates Underperform Rating, Lowers PT on Baidu.com
In a report published Monday, Credit Suisse Group reiterated its Underperform rating on Baidu.com (NASDAQ: BIDU), but lowered its price target from $82.00 to $80.00.
Credit Suisse noted, “We expect Baidu to use proceeds for M&A and see potential targets as: (1) Kingsoft (in order to hedge against the risk of Qihoo). Kingsoft, the No. 2 online security company, looks a good candidate for investment; (2) UCweb: Browsers are still the main entry point for mobile search and UCweb has a 30.5% share in the local mobile browser market, according to our proprietary survey; (3) Sina Weibo: Baidu is able to increase mobile user engagement. However, we take Weibo and Autonavi's recent cooperation on map service as implying Weibo is a less likely candidate.”
Baidu.com closed on Friday at $99.00.
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