Brean Capital Maintains Buy on Baidu Inc (ADR) Following 1Q:15 Results

In a research report released April 30, Brean Capital analyst Fawne Jiang maintained a Buy rating on Baidu Inc (ADR) (NASDAQ:BIDU) with a price target of $250, which represents a potential upside of 24.8% from where the stock is currently trading. The report comes after the company reported mixed (revenue misses, EPS beats) first-quarter results and guided to slightly soft second-quarter revenue growth.

Jiang noted, “We attribute the slightly soft guidance to increasing mobile contribution (~50% of total revenue in 1Q), yet with a lower monetization rate currently compared with PC. Despite a slower start, BIDU’s underlying fundamentals seem to be intact, in our view. We are particularly encouraged that mobile continues to deliver strong growth, predominantly driven by search, and that BIDU has made a consistent effort in educating/facilitating advertisers’ needs, strengthening its dominance as a key mobile gateway, and building an ecosystem by offering products and services to close the loop.”

“As we expect more verticals (e.g. health care, financial, education) to see further penetration on mobile in the coming quarters, BIDU is poised to improve mobile monetization and close the gap with that of PC, which offers more room for growth.”, the analyst added.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Fawne Jiang has a total average return of 2.8% and a 48.5% success rate. Jiang has a 5.5% average return when recommending BIDU, and is ranked #1510 out of 3587 analysts.

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