Saturday, January 26, 2013

Baidu: Goldman Lifts Target

Goldman Sachs analyst James Mitchell this morning repeated his Buy rating on Baidu (BIDU), raising his price target for the China Internet search company to $105, from $90. (He needed to do something, with the stock yesterday closing at $96.22, above his old target.

“We believe Baidu has experienced not only acceleration in its rate of revenue growth, which we expect to slow [starting in Q1 2011],� but also a sharp improvement in the quality of revenue growth, which we expect to persist,” he writes. Mitchell adds that the stock continues to look attractive, given solid near-term earnings trends, and PEG ratios of 1x 2011 and 0.8x 2012.

BIDU is up $2.01, or 2.1%, to $98.23.

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