RBC notes that BIDU reported 3Q08 with in-line rev
and EPS beat. Pro forma op margin rose to 44.7% as
the co right-sized some of its TAC payouts and realized
cost efficiencies. Despite mgmt's comments to the
contrary, they do believe the global slowdown is impacting
top line growth. And as was the case with GOOG, search
may be more resilient to a downturn, but it is not immune.
Firm did not note anything that would impair their investment
thesis, and Baidu is displaying the inherent leverage in its
business model. Firm raises tgt to $387 from $384.