RBC Capital Markets noted that the guidance reflects
"uncertainty in traffic patterns around the games.
"There will also be disturbances to the normal
course of business around Beijing, which will
likely affect advertiser spending in that area,"
said analysts Stephen Ju, David Bank and Ross
Sandler in a note to investors. They kept an
"Outperform" rating on the shares, but reduced
their price target by $1 to $384.
Citi Investment Research analysts Jason
Brueschke and Catherine Leung are more
optimistic, keeping a "Buy" rating and
$415 price target. "Despite concerns over
potential disruptions from the Olympics on
Baidu's 3Q, the company gave guidance that
was reassuring enough to allay concerns
over significant impact, in our view."