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Baidu gets an upgrade from J.P. Morgan following selloff
J.P. Morgan analyst Alex Yao suggested that Baidu Inc. shares have fallen too far in recent months, amid concerns about both the company's advertising outlook and the coronavirus impact on Chinese businesses. The shares are off nearly 18% from their 2020 closing high of $144.51. "While search-engine marketing has entered a mature stage and is likely to lose ad market share to feed ad operators over the long run, recent share price weakness and increasingly clear visibility on 2020 financials suggests a favorable risk-reward ratio for Baidu's share price on a 12-to-18-month view," Yao wrote. He upgraded Baidu's U.S. listed shares to overweight from neutral while raising his price target to $150 from $130. He said that investors now have better visibility into the company's cost structure and revenue potential. He also said that the company saw a boost in search traffic during Chinese New Year as more people stayed home due to the coronavirus outbreak, and this could lead to greater adoption of the company's services. Despite the upgrade, Baidu shares are off 0.8% in Monday trading, as the S&P 500 is up 1.6% and the KraneShares CSI China Internet ETF is up 1.3%.
https://finance.yahoo.com/m/4e2efe9...9aa/baidu-gets-an-upgrade-from.html?.tsrc=rss
J.P. Morgan analyst Alex Yao suggested that Baidu Inc. shares have fallen too far in recent months, amid concerns about both the company's advertising outlook and the coronavirus impact on Chinese businesses. The shares are off nearly 18% from their 2020 closing high of $144.51. "While search-engine marketing has entered a mature stage and is likely to lose ad market share to feed ad operators over the long run, recent share price weakness and increasingly clear visibility on 2020 financials suggests a favorable risk-reward ratio for Baidu's share price on a 12-to-18-month view," Yao wrote. He upgraded Baidu's U.S. listed shares to overweight from neutral while raising his price target to $150 from $130. He said that investors now have better visibility into the company's cost structure and revenue potential. He also said that the company saw a boost in search traffic during Chinese New Year as more people stayed home due to the coronavirus outbreak, and this could lead to greater adoption of the company's services. Despite the upgrade, Baidu shares are off 0.8% in Monday trading, as the S&P 500 is up 1.6% and the KraneShares CSI China Internet ETF is up 1.3%.
https://finance.yahoo.com/m/4e2efe9...9aa/baidu-gets-an-upgrade-from.html?.tsrc=rss
