Morgan Stanley Upgrades Baidu

In a report released Monday, Morgan Stanley analyst Philip Wan upgrades Baidu Inc

from Equal-weight to Overweight while increasing its price target from $181 to $239.30 a share. Wan values Baidu based on improvement on mobilization from mobile devices and PCs influencing the company's growth in sales and additional revenues from acquired businesses. Analyst at Morgan Stanley anticipate upside risk in Bidu's Diluted 2014 EPS estimate of $5.40, due to expected operating leverage in future quarters caused by the company's reduced discretionary spending.