2024-05-15 08:15:00 ET
In the run-up to Baidu 's (NASDAQ: BIDU) first-quarter results, scheduled to be published on Thursday, May 16, several analysts have tweaked their takes on the Chinese tech and internet giant. One who shaved $10 per share off his price target is nevertheless maintaining his bullish outlook. Here's why he thinks the company still has double-digit price-appreciation potential.
The pundit in question is Mizuho's James Lee. Less than a week before that earnings date, Lee reduced his fair value assessment of Baidu stock to $130 per share. Previously, he had pegged it as being worth $140 apiece. That cut wasn't drastic enough to change his recommendation, which remains a buy.
In his latest Baidu research note, Lee expressed concern that the company's advertising revenue was slowing, a key reason for his price-target cut. As with many other analysts evaluating Chinese stocks, he also believes the sputtering domestic economy will affect Baidu's performance. Yet he's encouraged by the company's efforts in the cloud sphere, where he's estimating that growth will land at around 9% year over year for the quarter.
For further details see:
Is Baidu Stock Going to $130? 1 Wall Street Analyst Thinks So.