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Credit Suisse Reviews Baidu's Earnings

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In a report published Thursday, Credit Suisse analysts maintained an Outperform rating on Baidu Inc (NASDAQ: BIDU), with a price target of $252.

Baidu reported in-line 1Q15 results, with revenues at Rmb 12.72 billion, in-line with Credit Suisse estimates and diluted adjusted EPS at Rmb 7.77, slightly ahead of Credit Suisse estimates.

The company also reported better 1Q margins and good progress in O2O initiatives like Baid Wallet, food delivery service, movie tickets, online education and Baidu Doctor.

"The number of Baidu Wallet linked accounts has reached 26 million in 1Q, thanks to the promotion of various O2O initiatives. In addition, It has been officially integrated into Uber, and become the default payment method in Uber," the analysts stated.

Baidu's movie ticket business and takeout food delivery services have also done well. "We believe Baidu will focus on its current in-house O2O categories with high frequency usage, and, at the same time, collaborate with third parties in other categories to enhance the service offerings," the analysts added.

The rating is based on the Baidu's attractive stock valuation. "We expect mobile search to continue to be the driver, with potential contribution from O2O in late 2016 or early 2017," the report mentioned.

Latest Ratings for BIDU

DateFirmActionFromTo
Apr 2017BenchmarkInitiates Coverage OnBuy
Mar 2017BarclaysInitiates Coverage OnEqual-Weight
Jan 2017BernsteinInitiates Coverage OnUnderperform

View More Analyst Ratings for BIDU
View the Latest Analyst Ratings

Posted-In: Credit SuisseAnalyst Color Reiteration Analyst Ratings

 

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