Jason Brueschke today cut his rating on Baidu to
Sell from Buy, slashing his price target to $110,
from $300. Brueschke today writes that he sees
four risks for the stock from here:

Consumer health categories are likely among the
most lucrative and thus “earnings could be impacted
even more than revenues.”

Other suspect categories may come under scrutiny,
including health and beauty products, lottery tickets
and fraudulent tax receipts.

Baidu’s reputation “has taken a big hit, and there is a
risk of a slowdown in query traffic growth.”

The company may have to change its search results
display to clearly separate paid and organic results,
“which could impact revenues further.”