Baidu shares have received a lift from J.P. Morgan
analyst Dick Wei, who this afternoon upped his price
target to $265 from $190. He now sees GAAP EPS of
$5.67 a share in 2009, and $8.35 in 2010. That’s
above the consensus at $5.48 and $7.34, respectively.
Wei writes that recent data points suggest that Baidu’s
search traffic was strong in Q1 and into early April. He
also says more small- and medium-sized businesses are
turning to Baidu to search advertising “due to its high
effectiveness.” And he asserts China’s macro outlook
“will remain stable in the near term.” Wei maintains his
Overweight rating on the stock.
Citi raised its target to $245 and Credit Suisse to $180.