Wednesday, April 29, 2009

Susquehanna on Baidu Q1

BAIDU reported first-quarter revenue and earnings
per share above guidance and our forecasts. While
operating margin was lower in the first quarter, it will
rebound to a normal level in the second quarter through
the fourth quarter. Management guided second-quarter
revenue to rise 32%-36% sequentially, even better than
our forecast of 30%, thanks to rising economic activities
and user traffic after the Chinese New Year. We maintain
our Positive rating on Baidu shares and slightly raise our
price target to $260 from $250.

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