Baidu: Deutsche Bank Says Buy; Sees Possible Double
Baidu (BIDU) shares are getting a boost this morning from Deutsche Bank analyst Alan Hellawell, who launched coverage of the Chinese search engine company this morning with a Buy rating and a $211 price target. Moreover, he says a “blue-sky scenario” yields a valuation of $432. (Sounds ambitious, although I would note that the 52-week high for the stock is $382.90.)
Hellawell notes that the Chinese search market is a duopoly, with 62 percent market share for Baidu, and 28 percent for Google (GOOG); he also notes that the market is “still nascent,” and should grow 37 percent compounded through 2012.
