good news: Baidu.com upgrade details - to Buy at Stifel; tgt $238
Briefing.com - 2/27/2014 9:03 AM ET
. As mentioned, Stifel upgraded BIDU to Buy from Hold and sets target at $238. The call is based on Baidu's very rapidly growing mobile search franchise. Through innovation and acquisitions, Baidu has built a mobile search ecosystem with strong momentum and limited competition. Mobile search queries are soaring and are likely to vault past 50% of Baidu search queries in 2014. Monetization is 60% of desktop queries and improving. Volume and price should fuel Baidu's mobile revenue growth. Baidu's 4Q13 results were mixed with a revenue beat, but profit shortfall. 1Q14 revenue guidance is strong, but margins will be under severe pressure due to heavy investments.