Deutsche Bank Boosts Price Target On Baidu.com (BIDU) to $374

Earlier, Deutsche Bank raised its price target on Baidu.com (Nasdaq: BIDU) to $374 from $241, maintaining their Buy rating. The new price target is based on 1.0 PEG, 38x 10E PE and 38% CAGR (09-12).

The firm said recent discussions with management leads them to believe that 2Q rev growth is above/in-line with 33-37% guidance, despite recent labor issues. The firm also commented, Baidu is well positioned to capture secular growth as its initiatives to improve service quality (Aladdin) and monetization (Phoenix Nest) receive positive initial feedback. We expect Baidu to capitalize on continuous improvement of China's Internet fundamentals given its mkt leadership, product quality and brand equity."

With share of BIDU trading at $289, this provides 29% upside to the firm's new price target.

DB's price target is the 2nd highest on the Street. Pacific Growth is the highest at $410 and the average price target on BIDU is $265.

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