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Jefferies Cuts Price Target on Baidu (BIDU)

September 21, 2012 1:16 PM EDT Send to a Friend
Get Alerts BIDU Hot Sheet
Price: $216.84 -1%

Rating Summary:
    19 Buy, 2 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 10 | Down: 9 | New: 11
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Today Jefferies reiterated their Buy rating on Baidu (NASDAQ: BIDU) and cut their target to $135.00 (from $150.00). In the report they noted that the company faces risk due to a faster than expected mobile Internet traffic migration.

Mobile traffic was 20 percent of Baidu’s traffic in 2Q12. Despite this, mobile revenue was only a single digit percentage of Baidu’s revenue, mainly due to lower level of mobile ARPU and number of advertisers. As smartphone penetration goes up, management thinks more SMEs will build their mobile websites and the mobile monetization will ramp up, stated the report.

Recently Baidu launched a new version mobile browser, which is faster and supportsHTLML5 and flash. Baidu plans to enhance its mobile browser to make more difficult for Qihoo (NYSE: QIHU) to replicate its PC search strategy on mobile.

Baidu’s new version mobile map provides real time traffic conditions, as well as location-based services (LBS) and information, which are potentially for future monetization, noted the report.

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 $111.27 yesterday.




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