Friday, April 24, 2009

Slew of upgrades/PT raises: RBC, Bernstein, Sterne Agee

Ests and tgt raised to $252 at RBC ahead of earnings.
RBC Capital notes Baidu is set to report its 1Q09 after
market close on April 27. RBC raised their FY09 revenue
and pro forma EPS estimates to $643 mln and $5.78 from
$623 mln/5.69 vs consensus of $602 mln/$5.59. Post weak
trends around Chinese New Year, Baidu's customer behavior
seems to be following the well-trodden seasonal pattern of
a strong March setting the theme for 2Q and 3Q. They have
now entered the two seasonally strongest quarters for Baidu
and expect ests to head higher after the report. And as they
look forward beyond the very near term, firm believes BIDU
shares are set to continue to outperform as investors
eventually roll the calendar to use 2010 est, and as such, they
are introducing FY10 rev/EPS ests of $900 mln/$7.88 vs
consensus at $800 mln/$7.42. Target increases to $252 from
$186 on raised ests.

Bernstein reiterates outperform and keeps target price at

Sterne Agee reiterates buy and raises target price to $250.

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