Goldman Sachs Comments On Baidu's (BIDU) 'Operation Sunshine'

Goldman Sachs commented on Baidu (NASDAQ: BIDU) after the expansion of the Operation Sunshine clean-up that seeks to rid the site of illegal private game servers, phishing and fraudulent promotion, and unicensed pharmaceutical providers. The firm expects the initiative to be immaterial to Q4 results.

"While some investors may draw comparisons with the major disruption caused by the pharmaceutical links clean-up in 2008, we believe the more developed client management infrastructure and verification policies Baidu has established since then represent a significant difference," the analyst said. The clean-up repesents more stringent enforcement of existing policies, versus implementing new policies.

The firm also mentioned the rapid inflation in medical-related keywords over the past few years, as highlighted by Sina.com

The firm maintained their Neutral rating and $165 price target on Baidu.

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 $136.17 yesterday.

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