Analysts rate Baidu Inc. (BIDU:NSD) with a Strong Buy, $219 Target

STA Research
by: STA Research
Baidu Inc.

Analysts rate Baidu Inc. with a consensus Strong Buy rating with a 12-month target price of $219.44 per share.

Recently, JP Morgan & Company downgraded the rating on Baidu Inc. from Overweight to Underweight, and cut the target to $90.

Based on the Baidu Inc. stock forecasts from 9 analysts, the average analyst target price for Baidu Inc. is USD 219.44 over the next 12 months. Baidu Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Baidu Inc. is Slightly Bearish, which is based on 3 positive signals and 5 negative signals. At the last closing, Baidu Inc.’s stock price was USD 108.97. Baidu Inc.’s stock price has changed by -29.40% over the past week, -51.82% over the past month and -58.96% over the last year.

Baidu, Inc. provides Internet search services in China. The company was formerly known as Baidu.com, Inc. Baidu, Inc. was incorporated in 2000 and is headquartered in Beijing, China.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Highly leveraged

Compared to its sector peers on debt to equity, the company is in the bottom half and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

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