Piper Sees Medical Search News Impacting Baidu's (BIDU) '09 Sales by 1-3%

Following a weekend report by China's CCTV related to Baidu.com's (Nasdaq: BIDU) paid search marketing tactics, Piper Jaffray is out with a research note considering the financial impact of such a development at the Chinese search-giant.

While the firm believes that there will be some impact on Baidu's financials, it sees the impact as likely being "less than first take." Piper maintains its Buy rating and $468 price target on shares of Baidu.com.

Piper sees the news impacting Baidu's CY09 sales by 1-3%, given that "pharma and medical keywords make up only a small portion of total keywords sold..." Outside changes made to Baidu's ads for medical sites, the firm does not expect significant changes to the company's sales practices.

Piper said its $468 price target on Baidu is based on 64x the firm's FY09 GAAP EPS estimate.

Baidu.com, Inc., through its subsidiaries, provides Chinese language Internet search services primarily in the People's Republic of China.

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