S&P Capital IQ Reiterates its BUY Rating on Baidu, Target Price Raised

October 29 00:00 2011

New York, October 29 (RainbowNewsLine.com) – Analyst Scott Kessler of S&P Capital IQ reiterates his BUY recommendation on the shares of Baidu (NASDAQ: BIDU), while raising his estimates for the company. The 12-month target price has been raised from $150 to $180.

Analyst Scott Kessler, in a research note published yesterday mentions that the company has reported its Q3 EPS ahead of the estimates and the consensus. Baidu’s revenues grew  85%, reflecting the strength in traffic, users and advertising activities, the analyst says. Margins were affected by investments that are targeted at long term growth prospects, the analyst adds. The EPS estimates for 2011 and 2012 have been raised from $2.80 to $3.00 and from $4.15 to $4.50, respectively.