Market Overview

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

Share:

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

DateFirmActionFromTo
Jan 2021JP MorganMaintainsOverweight
Jan 2021KeyBancMaintainsOverweight
Nov 2020KeyBancMaintainsOverweight

View More Analyst Ratings for BIDU
View the Latest Analyst Ratings

 

Related Articles (BIDU)

View Comments and Join the Discussion!

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

Latest Ratings

StockFirmActionPT
PENNCredit SuisseInitiates Coverage On128.0
GTLSPiper SandlerInitiates Coverage On160.0
GBTPiper SandlerDowngrades50.0
SWAVPiper SandlerDowngrades132.0
BECredit SuisseDowngrades32.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com