Baidu (BIDU) Q1 Likely to Show Continue Revenue Acceleration - Maxim Group

Maxim Group analyst Echo He reiterated a Buy rating and $200 price target on Baidu (NASDAQ: BIDU) ahead of Q1 results, noting revenue growth likely continued to accelerate in 1Q14, driven by revenue per advertiser.

He comments, "BIDU is reporting 1Q14 financial results on Thursday, April 24, after the Market close, with a conference call at 8pm EDT the same day (the dial-in number is 845-675-0437, and the passcode is 28733029). We believe BIDU will likely report revenues that top the consensus of $1,577.5M, which is higher than the high end of the guided range ($1,526M-$1,573M), representing more than 60% y/y growth. This would continue the growth acceleration, from 39%, 42%, and 50% y/y in 2Q13, 3Q13, and 4Q13, respectively. However, we believe BIDU’s margins will likely decline substantially y/y, resulting in a y/y decline in operating income. "

As previously discussed, the analyst believes BIDU’s growth going forward will more likely be driven by price increases. Checks continue to show that BIDU has a strong and growing mobile presence. On the PC side, BIDU may have continued to lose market share to Qihoo 360.

For an analyst ratings summary and ratings history on Baidu click here. For more ratings news on Baidu click here.

Shares of Baidu closed at $163.01 yesterday.

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