Nomura Securities Maintains a 'Buy' on Baidu (BIDU); Q4 Revs
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Price: $104.12 +0.43%
Rating Summary:
31 Buy, 10 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
31 Buy, 10 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Nomura Securities maintains a 'Buy' on Baidu (NASDAQ: BIDU) price target of $200.00.
Analyst, Jin Yoon, said, "We expect top-line revenues of CNY4.557 bn, representing 9% q-q growth, topping the company's previously guided range of 5.6-8.6% (midpoint 7.1%) q-q growth. Non-GAAP operating margins: 4Q at 54% compared to 54.3% in 3Q Non-GAAP EPS: 4Q at $0.93 compared to $0.86 in 3Q 1Q revenue expectations: 1% q-q decline, compared to street at -3% q-q decline. We recognize that investors are very concerned given the company's high valuation, significant outperformance in 2011, coupled with the potential muted advertising outlook in 2012. We have seen the stock trade off in the past three months, and we believe that much of the market’s concern has been priced in. Given the low expectations and expected conservative tone from management regarding advertising spend, we believe the 4Q earnings estimated for next week will be rather uneventful. Given the weak seasonality and potential conservative tone from management, we would be aggressive buyers after earnings."
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 $123.90 yesterday.
Analyst, Jin Yoon, said, "We expect top-line revenues of CNY4.557 bn, representing 9% q-q growth, topping the company's previously guided range of 5.6-8.6% (midpoint 7.1%) q-q growth. Non-GAAP operating margins: 4Q at 54% compared to 54.3% in 3Q Non-GAAP EPS: 4Q at $0.93 compared to $0.86 in 3Q 1Q revenue expectations: 1% q-q decline, compared to street at -3% q-q decline. We recognize that investors are very concerned given the company's high valuation, significant outperformance in 2011, coupled with the potential muted advertising outlook in 2012. We have seen the stock trade off in the past three months, and we believe that much of the market’s concern has been priced in. Given the low expectations and expected conservative tone from management regarding advertising spend, we believe the 4Q earnings estimated for next week will be rather uneventful. Given the weak seasonality and potential conservative tone from management, we would be aggressive buyers after earnings."
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 $123.90 yesterday.
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