Susquehanna Boosts Price Target on Baidu.com (BIDU) to $350

Susquehanna raised its price target on Baidu.com, Inc. (Nasdaq: BIDU) from $260 to $350, reiterating their Positive rating.

The firm said, "We use a square root sign to describe Baidu's growth structure. The angled line on the left part of a square root shape represents consumptions, while the horizontal line on the right stands for the advertiser budget limit. We think Baidu has shifted its major focus to work on improving the ROI of customers through Phoenix Nest System, whereby it can lift the budget line to monetize growing traffics. We think ARPU can easily double and triple from current levels in the next couple of years. That being said, we feel Baidu is facing increasing competition on the consumption side, with emerging rivals such as Tencent, Alibaba.com, and Taobao.com. Combining these factors, we think it is premature to worry about Baidu.com's growth at this point, because the market size is becoming much bigger from current level"

The firm new new non-GAAP EPS for CY10 is $10.

Real-Time Market Moving News Two-Weeks FREE http://www.streetinsider.com/premium_content.php

You May Also Be Interested In

• Canaccord Genuity Maintains a 'Hold' on Tiffany & Co. (TIF); Cutting PT and Estimates
• Jefferies Analysts Adjust Price Target on hhgregg, Inc. (HGG)
• JDS Uniphase (JDSU) to Benefit from Increased Capex at AT&T (T) and Verizon (VZ)

Create E-mail Alert Related Categories

Analyst Comments

Related Entities

Susquehanna International Group of Companies

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?

Follow StreetInsider.com On Twitter