UPDATE: Maxim Group Reiterates Sell Rating, Raises PT on Baidu.com on Strong Revenues, EPS Estimates

In a report published Thursday, Maxim Group analyst Echo He reiterated a Sell rating on

, and raised the price target from $75.00 to $95.00. In the report, Maxim Group noted, “Revenues strong while margins continued to decline. BIDU reported 2Q13 gross revenue of $1,232M, 1.3% above our estimate and 2.9% above consensus. GAAP EPS was $1.22, two cents below our estimate but one cent above consensus. The mid-point of 3Q13 revenue guidance, $1,422M-$1,460M, was 7% above our estimate and consensus. 2Q13 gross and operating margin were 70.2% and 41.4%, respectively, significantly down from 78% and 55.6% in 2Q12, continuing the y/y decline that started in 2Q12. Despite 2Q13 revenue increase of 38.6% y/y, BIDU's operating income merely grew 3.2% y/y and the net income attributable to BIDU declined 4% y/y.” Baidu.com closed on Wednesday at $113.37.