Friday, April 18, 2008

JP Morgan bullish on 1Q08 prospects for Baidu

Jan and Feb weak due to the snowstorm, but March
very strong. April also stronger than usual due
to searches for Olympic torch relay news. JPM
believes there is upside to 1Q08 estimates, with
traffic being flat from Q407 instead of being
down as per earlier estimates.

Forecasts 2Q08 sales of US$104.2M (up 98% YoY,
up 40% QoQ), adj. EPS of US$1.04 (up 82% YoY,
up 52% QoQ). I don't think JPM is taking Yuan
appreciation into account. Their target price
is $380.

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