JP Morgan and Pacific crest cut estimates

Dick Wei of JPM cut earnings forecasts 5% for
this year and 19% for 2009, citing weaker revenue
from the medical and pharmaceutical sector, as well as
macro economic conditions affecting online ad spending
by small- and medium-sized businesses. Estimates
GAAP EPS of $4.44 this year and $5.92 next year;
the Street averages were $4.62, and $6.30. Maintains
Overweight rating and $300 target, asserting that the
company over time should maintain its market
leadership in search in China.

Pacific Crest’s Steve Weinstein sees slower customer
growth in Q4 in some regions due to the weakening
economy and the fallout from the health-care advertising
controversy. Cut his 2008 EPS estimate to $4.55 from
$4.81; for 2009 to $6.42, from $7.71. Maintains Outperform
rating, with a $250 price target, based on 40x 2009 EPS
estimate. Weinstein says the long-term story is intact, and
that P/E will likely expand when the market and economy
improve.