Deutsche Bank maintains a 'Buy' on Baidu.com
price target raised to $241.
Deutsche analyst says, "We lift 09 EPS to US$6.61
from US$6.27, mainly due to positive 2Q guidance of
33-37% YoY vs. our 27%. We raise 3Q and 4Q
forecasts accordingly. As a result, we raise our
09 YoY rev growth estimate from 34% to 46%...
We raise 08-11 CAGR from 32.8% to 36.4%. The
positive 09 outlook drives better rev growth in
2010, given likelihood of macro rebound in 2010.
Our base case scenario assumes 19% advertiser
growth from 2008-2011 (0.6% penetration of total
SMEs/42% of SMEs w/websites). Blue Sky scenario
analysis assuming an advertiser growth of 48% for
the same period (1.2%/80%) leads us to a hypothetical
valuation of US$432."