Monday, September 17, 2007

Baidu.com (NASDAQ:BIDU): Actionable trading call alert!

- RBC Capital is upping their tgt on Baidu.com (NASDAQ:BIDU) to $333 from $302 saying they believe 3Q07 is tracking well as BIDU should be able to add at least as many advertisers as it did last quarter. July was better than June, August was flat to slightly better than July, and September is tracking to be better than August.

Salesforce Headcount Continues to Increase: RBC believes this is a good indication of the management team's confidence in underlying business trends.

Longer-term the firm believes company is reaching critical mass and e-commerce is starting to emerge as a key thematic catalyst. Their high-on-the-Street 2009 GAAP EPS projection of $7.58 may prove conservative as they believe there is an upward bias to estimates. Firm also notes that fully-loaded SG&A costs are about $11k for person for BIDU. It is likely 15 times this for Google.

Maintains Outperform.

Notablecalls: RBC's tgt on BIDU is the new Street high. This alone will make BIDU buyable today. I see it hitting $240 by noon easy. Actionable trading call alert!

1 comment:

Anonymous said...

What do you see for tomorrow, Tuesday.