China Renaissance Upgrades Baidu (BIDU) to Buy

China Renaissance upgraded Baidu (NASDAQ: BIDU) from Hold to Buy with a price target of $204.00.

Analyst Ella Ji commented, "We are upgrading BIDU to Buy from Hold with a $204 price target, suggesting 24% upside from 12/30/2016's close. We think 4Q16 is the trough and anticipate 2017 will be an outperforming year for BIDU stock based on current valuation and rebounding fundamentals. We forecast its topline growth will return to 23% (vs 6% in 2016E), meanwhile, its adj'd op margin should enhance to 20% from 16.3% in 2016, leading to 50% y/y growth at the op income level, with another potential 10%+ upside in the bottom-line if its newsfeed product performs strongly. Our SOTP based PT of $204 equates to 31/25x our 2017/2018E adj'd EPS, respectively."

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 $164.41 yesterday.

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