Deutsche Bank has cut the stock to Hold from Buy, admitting an oversupplied digital media space is having a bigger-than-expected impact on the company. The bank is positive long term but looks ahead to virtually no core top-line growth for a number of quarters along with a hit to profits from investment; it's slashed its target to $147 from $289, now implying 12% upside.
Bulls, meanwhile, see a silver lining in expectations that are reset lower. Among other analysts, Mizuho's James Lee saw a slowdown coming for Q2 on factors including higher competition. He's keeping a Buy rating but lowered his price target to $195 from $205 (49% upside).
More than half of covering firms still have a Buy-equivalent rating on the stock, with consensus price targets implying more than 40% upside.
Daiwa has downgraded the stock to Hold with a $145 price target. And KeyBanc cut its price target to $179 but remains Overweight.
Previously: CCB steps to Baidu sidelines after Q1 print (May. 17 2019)
Now read: Baidu: Casualty Of War »
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