Cashtaggers Bet On $BIDU Earnings
Shares of Chinese-language Web services company Baidu climbed today in advance of its earnings report. The company will hold an earnings conference call after the bell today at 8p.m.
Analysts expect $1.38 EPS on $1.43 Billion in sales, according to Estimize.com, a stock analysis company. Estimize’s users expect better: $1.43 EPS on $1.46 Billion in revenues, according to its consensus figure based on 61 submitted estimates.
Cashtaggers overwhelmingly believe the company will meet or beat expectations. About 88% are bullish according to StockTwits’ sentiment analytics.
— cheri (@cheri1) Feb. 26 at 11:54 AM
— Alejandro (@ElevatedTrading) Feb. 26 at 11:03 AM
Goldman Sachs analysts upgraded the stock this week to a Buy. They raised their price target from $160 to $220 per share. That would be a 26% premium over the stock’s intra-day price of $174.
Goldman analysts believe Baidu’s costly acquisitions, including a map service company, have given it a leading position in location based technology. Baidu Map has 54% share of mobile user traffic, according to a report quoted in the Goldman note to shareholders. Goldman expects that they will be able to serve ads to this growing group and increase operating margins.
Many cashtaggers agree.
— JOHN S GILBERT (@johnsgilbert) Feb. 25 at 11:42 PM
J.P. Morgan analysts take the opposing view. They believe that acquisitions such as 91 Wireless Websoft, which Baidu acquired last year for $1.8 Billion, will lose money in the near-term, dragging down Baidu’s profits.
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