ALL SECTIONS
Your Investment News From China to Wall Street

Oppenheimer Lowers Price Target on Baidu to $210 Per Share

Jason Helfstein from Oppenheimer said today that it maintained a "Buy" rating on Baidu but that he lowered the company's price target to $210 from $230 per share.

Shirley Tian
    Jan 28, 2019 4:58 PM  PT
Oppenheimer Lowers Price Target on Baidu to $210 Per Share

An Oppenheimer analyst cut his price target Monday on the stock of Chinese search giant Baidu Inc. (Nasdaq: BIDU) following the company's disappointing stock performance.

Jason Helfstein from Oppenheimer said today that it maintained a "Buy" rating on Baidu but that he lowered the company's price target to $210 from $230 per share.

"We are updating our model, and now expect BIDU to continue investing in key areas, such as content and sales & marketing in 2019, regardless of softer advertising industry trends," said Helfstein. "Additionally, we expect the recently announced CCTV CNY gala sponsorship to have a one-off negative impact on 1Q:19E margins due to higher marketing dollars, but beneficial to user acquisition (and long-term revenue growth)."

"Therefore, we are lowering our BIDU price target to $210 (from $230) on slower revenue, higher investments in 2019, Opco's recently lowered CTRP price target and recent downward movement of IQ shares," Helfstein continued. 

Just a week ago, analysts from Citigroup also announced a target cut on Baidu from $262 to $205 in a research note, while maintaining an "overweight" rating. 

In response, shares of Baidu dropped nearly 3 percent in early trading today before climbing back up a bit to close at $167.50 per share in New York, up 40 cents. 

The stock price of Baidu has plunged more than 33 percent over the past six months in the midst of general uncertainties.

MOST VIEWED
YOU MAY LIKE