Summit Research Views Microsoft (MSFT) Partnership as Positive for Baidu.com (BIDU)

Summit Research sees the announced partnership with Microsoft (NASDAQ: MSFT) as a modest positive for Baidu (NASDAQ: BIDU). Baidu.com will become the default homepage and search engine for the Microsoft Edge browser in Windows 10, and BIDU will help spread Windows 10 in China. However, analyst Henry Guo doesn't believe that Windows 10 can have strong traction in China over the next several years, mainly due to competition and securities issues. The Chinese government doesn't allow government agencies to update operating systems to higher than Windows 7 out of concern for security.

Guo commented, "Earlier today Baidu and Microsoft announced a strategic partnership that Baidu.com and Baidu Search will become the default homepage and search engine for the Microsoft Edge browser in Windows 10. Meanwhile, Baidu will help Microsoft distribute its Windows 10 in China, including applications for Search, Video, Cloud and Maps for Windows 10."

Summit Research has a Buy rating on Baidu (NASDAQ: BIDU) with a price target of $205.00.

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 $132.37 yesterday.

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