In a report released today, Jason Helfstein from Oppenheimer maintained a Buy rating on Baidu (NASDAQ: BIDU), with a price target of $265. The company’s shares opened today at $198, close to its 52-week low of $189.
“We are updating our model to reflect the recently closed spin-off of BIDU’s financials business, further RMB depreciation, higher TAC/pre-install/content costs and removing one-time gains impact on NI. FSG spin-off closed at the end of August, and will only contribute two months of revenue (~535M RMB). We are also removing $1.8B one-time gain from the transaction, which previously has impacted NI and E/ADS. Main investor concern is around macro/trade war and risk of GOOGL re-entrance into China. However, we think these risks are over-stated, especially GOOGL (in face of increased US government scrutiny). We are lowering BIDU price target to $265 (from $295) due to higher near-term investments, Opco’s recently lowered CTRP price target and recent downward movement of IQ shares.”
According to TipRanks.com, Helfstein is a top 100 analyst with an average return of 17.7% and a 62.0% success rate. Helfstein covers the Technology sector, focusing on stocks such as Endurance International, ANGI Homeservices Inc, and IAC/InterActiveCorp.
Baidu has an analyst consensus of Strong Buy, with a price target consensus of $306.71, which is a 54.9% upside from current levels. In a report issued on October 1, Credit Suisse also maintained a Buy rating on the stock with a $313 price target.
The company has a one-year high of $284.22 and a one-year low of $189. Currently, Baidu has an average volume of 3.12M.
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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.