Oppenheimer analyst Jason Helfstein maintained a Buy rating on Baidu (BIDU) today and set a price target of $205. The company’s shares opened today at $173.50, close to its 52-week low of $153.78.
Helfstein commented:
“We are maintaining our Outperform rating, but modestly cutting our target to $205 (was $210) after BIDU reported mixed 4Q results and implied higher costs in 2019. BIDU noted weakness in certain verticals from industry-specific headwinds, but highlighted strong user growth for its strategic apps (Baidu, Haokan & Quanmin), with meaningful monetization of DuerOS and Apollo targeted for 2020 or later. Additionally, BIDU disclosed its cloud revenue more than doubled y/y and reached RMB 1.1B in 4Q. We see the shares as range-bound in the near term until investors see more success from Baidu/short video apps and monetization of AI initiatives. We view BIDU core valuation as attractive at 7x ’19E EBITDA with ’17-’20E CAGR of 15%.”
According to TipRanks.com, Helfstein is a top 100 analyst with an average return of 17.3% and a 62.7% success rate. Helfstein covers the Technology sector, focusing on stocks such as Endurance International, ANGI Homeservices Inc, and Spotify Technology SA.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Baidu with a $220.69 average price target, which is a 27.2% upside from current levels. In a report issued on February 11, UBS also maintained a Buy rating on the stock with a $200 price target.
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Baidu’s market cap is currently $47.51B and has a P/E ratio of 13.30. The company has a Price to Book ratio of 2.58.
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Baidu, Inc. is a Chinese language internet search company, which engages in the provision of internet search solutions and online marketing solutions. It operates through Baidu Core and iQIYI segments. The Baidu Core segment offers keyword-based marketing services. The iQiyi segment focuses in the membership and online advertising services.
