Baidu (BIDU) Buy Rating Maintained at Deutsche Bank

Deutsche Bank earlier maintained a Buy rating on Baidu (NASDAQ: BIDU) with a price target of $245. Comments follow management discussions.

Analyst Alan Hellawell III said, "Baidu mgmt in the afternoon sessions described its longer term mission in mobile as "connecting people to services", given that search demand on mobile is more diversified and services-oriented than on PC. A deeper look into the co's newly launched Baidu Connect account system suggests that Baidu seeks to generate incremental revenue (either ad dollars or commissions) from providing more value to merchants, on top of the existing keyword bidding system. The two systems will run in parallel. Should the co successfully fulfill this mission, it should be able to deliver a much broader value proposition to both existing marketing clients and to-be-enrolled offline merchants; and thus reach a higher-than-PC sustainable margin profile in the long run."

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 $224.80 yesterday.

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