Pacific Crest’s Steve Weinstein this morning cut his
price target for Baidu to $360 from $405, citing
“market conditions and the potential lack of Q3
upside.” He keeps his Outperform rating on the Chinese
Internet search engine.
Weinstein writes that Q3 results are likely to miss
his revenue estimate of $140 million, but nonetheless
likely exceed the Street consensus of $134 million.
He now thinks the number will be about $135 million.
He thinks EPS will be about $1.27, 5 cents below his
current estimate, but 2 cents above the Street.
Weinstein says the company rolled out fee structure
changes in the quarter that should improve quality and
monetization long term, but which “led to a slowdown
of customer acquisitions in Q3.”