2010 estimated PE and 38% CAGR (09-12).
The firm said recent discussions with management
leads them to believe that 2Q rev growth is
above/in-line with 33-37% guidance, despite recent
labor issues. The firm also commented Baidu is well
positioned to capture secular growth as its initiatives
to improve service quality (
monetization (Phoenix Nest) received positive initial
feedback. They expect Baidu to capitalize on continuous
improvement of China's Internet fundamentals given
its mkt leadership, product quality and brand equity.
DB's price target is the 2nd highest on the Street, below
Pacific Crest's $410.