Samsung Securities Maintains Buy Rating, $180 PT on Baidu
July 11, 2011 7:33 AM
Samsung Securities is maintaining its Buy rating and $180 PT on shares of Baidu, Inc. (NASDAQ: BIDU).
“Baidu announced on Jul 8 a major company reorganization which included the formation of four business functions—sales, commercial operations, user products and technologies, and commercial products and technologies,” Samsung Securities writes. “The firm appointed a VP to be head of each division—all reporting to CEO Robin Li. Baidu also announced that SVP Haoyu Shen resigned for personal reasons and will leave at end-July.
“Maintain BUY and our 12-month DCF-based US$180 target. Today's announcement is unlikely to have an impact on the firm's P&L. In fact, the reorganization could lead to stronger earnings growth in the mid-to-long term. If Baidu's shares trade down on the announced resignation, this would provide enhanced upside potential.”
Baidu closed Friday at $147.78.
