UBS upgrades from Sell to Neutral

PT from $150 to $380.

The analyst, Wenlin Li, compares the average spending
of a Baidu customer, $2500/year, to that of Google,
$16000/year. Google's margins rose as its business
scaled, and the same is likely for Baidu as well. Li is
estimating 2009 revenue of 4.5 billion RMB, with 2010
and 2011 estimates being boosted by 33 and 38%. Gross
profit is also being revised up, 60% each for the next 2
years. Net profit revised up by 40%. Largely because
Phoenix Nest did not have the detrimental impact the
analyst had feared.