Bernstein Starts Baidu (BIDU) at Underperform
- Wall Street ends higher, notches weekly gains as Fed meeting looms
- Intel pares losses but sheds $9 billion in value on dire outlook, dividend concerns
- Analysts rush to cut Intel (INTC) price targets following weaker than expected Q1 guidance
- Lucid Group (LCID) doubles on Saudi rumors
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
Bernstein initiates coverage on Baidu (NASDAQ: BIDU) with a Underperform rating and a price target of $150.00.
Analyst Bhavtosh Vajpayee comments "Baidu's core search business is slowing, and will likely lose up to 5ppts of digital ad share in the coming three years. Video is an area of growth, but Baidu is currently in a three-way battle with Alibaba and Tencent. Artificial intelligence is a space where the company has made impressive early moves, but monetization is still some years away. The most exciting event ahead for Baidu's shareholders is a retrenchment in the distracting O2O business, which has wrecked the profitability of the company as a whole, impinged on its resources to win the video war, and seems to suffer from a structural question on normalized profits. While cutting back in the O2O business can create a significant pop in the stock, our Underperform recommendation is based on what Baidu is, not what it could be. We do think, however, that Baidu would be well served by a return to its roots in core tech, where it has undeniable strengths — and a shift away from lifestyle services (O2O), where the gap with the dominant player has expanded, and which seems a battle it cannot possibly win."
Shares of Baidu closed at $180.31 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Visa adds to gains as cross border travel recovery buoys shares
- Cie de Saint-Gobain (SGO:FP) (CODYY) PT Raised to EUR70 at JPMorgan
- Loblaw Companies Ltd. (L:CN) (LBLCF) PT Raised to Cdn$165 at RBC Capital
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Related EntitiesSanford C. Bernstein
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!