Tuesday, January 26, 2010

Deutsche bank upgrades Price Target again

New street high of $604. Believes Google's likely departure
from China would leave Baidu Union the only Internet search
ad alliance around, allowing Baidu to lower TAC (amount
paid to the partnering websites) gradually. Specifically from
2H10. This should lead to margin improvement, though
limited by maintenance costs and improvement in TAC
revenue itself as traffic rebounds this year. DB raised its
FY10 and FY11 margin estimates both to 44% from 41%
and 39% respectively.

[Source: streetinsider.com]

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