Baidu, Sohu: Bernstein Bullish on China Internet Plays

Baidu (BIDU) and Sohu (SOHU) shares are both trading higher today after Bernstein Research analyst Jeffrey Lindsay launched coverage of the two China-based Internet play with Outperform ratings. He set price targets of $170 for Baidu and $80 for Sohu.

“Concerns about the Chinese economy and a spate of controversies affecting the Internet in China, including a recent crackdown on pornography, have rattled investor confidence in both stocks,” he writes. But Lindsay says those fears are “unwarranted,” and asserts that “even with slower economic growth, there is more than enough domestic growth to fuel both players for at least the next 5 years.”

Lindsay notes that China has surpassed the U.S. to become the world’s largest Internet market. But he says that in terms of per capita usage, the Net in China still looks like the U.S. in the late 1990s.

Read the rest of this post


Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »