UPDATE: Citigroup Reiterates Sell Rating, Lowers PT on Baidu.com

In a report published Monday, Citigroup reiterated its Sell rating on Baidu.com

, but lowered its price target from $95.10 to $90.00. Citigroup noted, “We have revamped our Baidu model by applying traffic matrices to forecast its financials (vs. just customer numbers & ARPU). Baidu is in a transition period, having switched its focus to mobile Internet and cloud computing, in addition to encouraging its employees to embrace ‘wolf spirits.' We believe investors should reexamine their perception of the company. Following a recent uptick (+23% from its Dec-2012 low) and also the revamp of our model, we reiterate our Sell rating and cut our DCF-based target price on Baidu to US$90 (from US$95.10), implying 17x 2013E PE. During the transition period, we believe Baidu could trade range-bound between US$75-US$100 (or 15-20x 2013E PE).” Baidu.com closed on Friday at $108.01.