There's no doubt Baidu's (NASDAQ:BIDU) fourth quarter results will be impressive, as growth is expected to be over 80 percent for 2010. The question is how Baidu will do going forward, as competition heats up from Google (Nasdaq:GOOG) and privately held Taobao.
Auriga says, "We maintain our rating on BIDU ahead of 4Q10 results despite our expectations of a strong quarter. While BIDU is likely to report Y/Y growth north of 80% in 2010, we believe full year 2011 could be a tough year in terms of competition and growth compared to 2010. We believe increasing competition from Google (GOOG)(NR) and Taobao (private) can impose pressure on BIDU's growth. Consensus' expectations of 61% Y/Y revenue growth are aggressive we believe. Based on our updated model and estimates, we believe the stock is worth $107 vs. our previous price target of $79 and it is fairly valued at these levels. The upside for the stock price from here in 2011 could be limited."
Auriga maintains a "Hold" rating on Baidu (BIDU), which was trading at $106.61, dropping $2.44, or 2.24 percent, as of 1:11 PM EST. Auriga raised their price target on Baidu from $79 to $107.
No comments:
Post a Comment