After TH Data Capital and Benchmark Co. gave Baidu (NASDAQ: BIDU) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Jason Helfstein reiterated a Buy rating on Baidu today and set a price target of $295. The company’s shares closed on Friday at $253.01.
Helfstein noted:
“With Core Search being valued at 11x ’19E EBITDA, we are reiterating our Outperform rating, and highlighting the 17% potential appreciation to our price target. BIDU shares declined 10% Friday, following the announcement that COO Qi would leave the position. We believe this is an overreaction, for the following reasons: 1) core revenue (AI-driven Search & Feed) should remain strong, as Search leadership is unchanged; 2) strategic restructuring almost complete (reduced O2O losses, sale of Baidu Delivery, IPO of iQiyi and planned spin-off of 3) concerns on spending discipline post-Qi are exaggerated, in our view. Current valuation in line with GOOG (10.5x ’19E core EBITDA), even though BIDU core growing 25% CAGR vs. 16% for GOOG. Target assumes 13.6x ’19E core EBITDA.”
According to TipRanks.com, Helfstein is a top 100 analyst with an average return of 18.6% and a 67.3% success rate. Helfstein covers the Technology sector, focusing on stocks such as Endurance International, ANGI Homeservices Inc, and IAC/InterActiveCorp.
Currently, the analyst consensus on Baidu is Moderate Buy and the average price target is $299.22, representing a 18.3% upside.
In a report issued on May 8, Goldman Sachs also assigned a Buy rating to the stock with a $319 price target.
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Baidu’s market cap is currently $70.01B and has a P/E ratio of 25.00. The company has a Price to Book ratio of 4.46.
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Baidu, Inc. operates as an internet search provider, which offers internet search solutions and online marketing solutions. The firm operates as an e-commerce platform with an online payment tool, develops and markets web application software, and provides human resource related services.
