Market Overview

UPDATE: Bank of America Raises PT on Baidu on Confidence in New Bidding System

Related BIDU
Expect Soft Results From Baidu As It Seeks To Capture The Cloud
Baidu Launches Melody, AI-Powered Conversational Bot for Doctors and Patients
Momo, Sina, YY, Baidu Gain After Shanghai Index Rises (Investor's Business Daily)

In a report published Wednesday, Bank of America analyst Eddie Leung reiterated a Buy rating on Baidu (NASDAQ: BIDU), and raised the price target from $158.00 to $177.00.

In the report, Bank of America noted, “In our meeting with Baidu last week, the company indicated their confidence in the new advertiser-facing keyword bidding system, launched in 2Q13, to drive mobile revenue. The system enforces a minimal keyword bid price for mobile traffic, which is set at 10% of the bid price for the same keyword on PC. Hence, advertisers will have a chance to obtain an ad listing on mobile of any keyword they intend to buy on PC. They believe this can better induce advertisers to test the water on mobile. Management has seen no major pushback from advertisers and over 50% of their clients are already setting up a mobile landing page. Such progress provides support to our view that mobile should account for 22%/ 30% of search sales in 2014E/ 15E (Table 1), and an increase in estimated mid-term op income growth to a 14% 2014-17E CAGR from 11%.”

Baidu closed on Tuesday at $158.64.

Latest Ratings for BIDU

Oct 2016OTR GlobalUpgradesNegativeMixed
Sep 2016Deutsche BankDowngradesBuyHold
Aug 2016JP MorganAssumesUnderweight

View More Analyst Ratings for BIDU
View the Latest Analyst Ratings

Posted-In: Bank of America Eddie LeungAnalyst Color Price Target Analyst Ratings


Related Articles (BIDU)

View Comments and Join the Discussion!