Deutsche Bank Upgrades Baidu (BIDU) to Buy Following Q1 Beat

Deutsche Bank upgraded Baidu (NASDAQ: BIDU) from to Buy with a price target of $229.00 (from $178.00).

Analyst Alan Hellawell III said, "Baidu delivers solid 1Q revs of Rmb9.5b at the top end of guidance (+59%YoY/ flat QoQ), largely in line with cons./DBe. On lower-than-expected OPEX and FX gains (US$4c/ADS), non-GAAP EPADS at US$1.24 was 24% above the Street's US$1/ in line with DBe. Baidu continues to guide upbeat top line at 56%-60% YoY for 2Q, beating cons. by ~4%. Despite a purported heavy investment plan for the rest of FY14, we believe the market has underestimated BIDU's viability and is overly conservative on its growth /earnings outlook. We believe it is unjustified for BIDU to trade at a significant discount vs. peer avg amid steadily improving fundamentals."

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 $159.74 yesterday.

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