UPDATE: Jefferies Initiates Coverage on Baidu Inc. (BIDU) at Buy, Sees 73% Revenue Growth & 76% Earnings in 2011
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Price: $91.97 --0%
Rating Summary:
31 Buy, 9 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
Rating Summary:
31 Buy, 9 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
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Jefferies initiated coverage on shares of Baidu Inc. (Nasdaq: BIDU) today with a Buy rating and $200 price target.
BIDU is the firm top pick in its market and its price target of $200 allows for an upside of 38% from the stocks current price.
With the search market having such high entry barriers and limited competition, Jefferies believes that the company will continue to benefit and grow. The firm anticipates that BIDU will experience revenue growth of 73% and earnings growth of 76% in 2011, and 65% and 64% growth in 2012.
The company continues to benefit from Google (Nasdaq: GOOG) leaving China in 2009. BIDU is the number one search engine with very high brand recognition in China.
The firm comments that, "Traffic acquisition cost (TAC) to sales ratio has been trending down since 1Q10, coinciding with Google's exit from China. As market share expands by both traffic and revenue, Baidu has successfully lowered its average payout ratio to 3rd party websites. Despite investments, we expect BIDU to have a stable margin given limited competition and scale."
BIDU is the firm top pick in its market and its price target of $200 allows for an upside of 38% from the stocks current price.
With the search market having such high entry barriers and limited competition, Jefferies believes that the company will continue to benefit and grow. The firm anticipates that BIDU will experience revenue growth of 73% and earnings growth of 76% in 2011, and 65% and 64% growth in 2012.
The company continues to benefit from Google (Nasdaq: GOOG) leaving China in 2009. BIDU is the number one search engine with very high brand recognition in China.
The firm comments that, "Traffic acquisition cost (TAC) to sales ratio has been trending down since 1Q10, coinciding with Google's exit from China. As market share expands by both traffic and revenue, Baidu has successfully lowered its average payout ratio to 3rd party websites. Despite investments, we expect BIDU to have a stable margin given limited competition and scale."
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