Goldman Sachs Downgrades Baidu (BIDU) to Neutral Citing Less Positive Risk/Reward

Goldman Sachs downgraded Baidu (NASDAQ: BIDU) from Buy to Neutral with a price target of $165 citing a less positive risk/reward.

The firm notes shares are up 1021% since they upgraded on Dec 15, 2008.

"While we continue to view favorably Baidu’s improved quality of growth and immense revenue opportunity as e-commerce growth accelerates advertiser adoption, we believe that relative outperformance hereon could be difficult," the analyst said.

A weakening ad environment could affect Baidu at the margin despite structural growth from rising online and search advertising adoption, the firm notes.

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

Shares of Baidu closed at $126.23 yesterday.

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