Monday, August 25, 2008

Canaccord Adams reiterates sell

with price target $265. As a very successful Olympics
comes to a close, Canaccord Adams raises the issue of a
post-event hangover on the horizon as China faces a
slowing global economy (firm projects GDP growth to slow to
8% next year) and accelerating inflation (around 6% this
month). The firm is also witnessing Chinese Internet leaders
Sina Corp, and Tencent tempering their 2009 growth
expectations, particularly in the ad market, and they expect
this to create downward pressure on Baidu's stock. The firm
says that Baidu should experience slowing growth in the back
half of the year - cited Sept qtr growth to slow due to
interruptions from the Olympics.

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