UPDATE: Maxim Upgrades Baidu
In a report published Friday, Maxim analyst Echo He upgraded Baidu (NASDAQ: BIDU) to Buy from Hold, maintaining its $200.00 price target.
According to the report, the upgrade is mainly based on continued growth of China's internet economy, BIDU's mobile/PC market leadership and increasing efforts on new products and markets. It is to the analyst's belief that BIDU should trade at peer average, instead of their previous view of a discount to peers.
“BIDU's major downsides, in our view, are continued loss of PC traffic share to competitors and continued margin decline in 2014,” the report noted. “However, BIDU's recent aggressive promotions of its mobile products, e.g. mobile search app, Baidu map, and app stores could further improve its mobile presence and drive revenues, outweighing downside to the stock. We are raising our 2014 and 2015 EPS estimates by 3% each to $6.18 and 7.62, respectively. We believe BIDU should trade around the peer average. Our $200 price target represents 26.3x our 2015 EPS, comparable to peer average of 26.5x.” BIDU closed Thursday at $179.00 with shares trading up at 1.94 percent.
Latest Ratings for BIDU
|May 2016||Morgan Stanley||Maintains||Overweight|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.