Mizuho Securities Reiterates Buy Rating on Baidu (BIDU)

Mizuho Securities analyst James Lee reiterated a Buy rating and $195.00 price target on Baidu (NASDAQ: BIDU), noting incremental investments to be reduced by half.

Lee commented, "Our checks indicate that incremental expense step-up for Baidu core will likely be reduced to RMB 500m per quarter from previously guided 1bn. This reduction was mentioned during the 1Q19 management call to reflect lower revenue guidance for Baidu core for 2Q19 but the amount was not quantified. That said, we believe core Baidu operating income of RMB 17.2bn appears to be on-track. The negative investor sentiment appears to be overstated as the current stock price implies 2x EV/EBITDA for its core business vs. 8x for Google."

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 $115.68 yesterday.

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