Nomura Securities Maintains a 'Buy' on Baidu (BIDU); Fraudulent Website Issue Immaterial

Nomura Securities maintains a 'Buy' on Baidu (NASDAQ: BIDU).

Nomura analyst, Jin Yoon, says, "Over the past two days, a CCTV report has highlighted that Baidu allows fraudulent websites among its promoted links in search queries. The report suggests that Baidu’s Phoenix Nest does not take the measures necessary to effectively identify the fraudulent and many times fake sites often use to defraud consumers. We believe with a customer base of approximately 300K, there are certain fraudulent links and sites that fall through the cracks; however, we do not see this as a rampant activity. We find the financial impact to be immaterial and believe this issue is rather noise in the marketplace."

For more ratings news on Baidu click here and for the rating history of Baidu click here.

Shares of Baidu closed at $136.92 yesterday.

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