Oppenheimer Raises Price Target For Baidu Inc (ADR) (BIDU) Following 4Q:15 Results

In a research report released today, Oppenheimer analyst Jason Helfstein reiterated an Outperform rating on shares of Baidu Inc (ADR) (NASDAQ:BIDU), while raising the price target to $240 (from $225), after the company reported fourth-quarter earnings results that topped Wall Street expectations.

Helfstein observed, “Revenue exceeded Opco/Street estimates by 2%/1%, in the face of currency headwinds and concerns over macro conditions. Margins benefited from overall cost discipline. We believe investors will react to three key themes: 1) despite industrial economic headwinds, BIDU’s local strategy and leading technology position it to benefit from consumer spending; 2) as expected, investments in local are becoming more disciplined, indicating a less competitive environment; 3) divestiture of non-core business should benefit BIDU’s margins by 600-3,000 bps, and unveil search’s standalone value (valued at $219/ADS). Maintain Outperform as we believe the current stock price does not reflect BIDU’s strong growth and profitable outlook.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Helfstein has a total average return of 5.2% and a 46.8% success rate. Helfstein has a 41.4% average return when recommending BIDU, and is ranked #415 out of 3682 analysts.

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