Bank of America Issues Pessimistic Forecast for Baidu (NASDAQ:BIDU) Stock Price

Key Points

• Bank of America cut its price target on Baidu from $180 to $165 while keeping a buy rating, implying about 53% upside from the prior close.
• Other analysts were mixed: Baidu’s consensus rating remains Moderate Buy, with an average target price of $163.11, though several firms recently adjusted ratings and targets in both directions.
• Baidu shares fell to $107.60 in Tuesday trading, below both its 50-day and 200-day moving averages, while the stock has ranged from $84.64 to $165.30 over the past 52 weeks.

Baidu (NASDAQ:BIDU - Get Free Report) had its target price lowered by stock analysts at Bank of America from $180.00 to $165.00 in a report released on Tuesday,Benzinga reports. The brokerage currently has a "buy" rating on the information services provider's stock. Bank of America's price target would suggest a potential upside of 53.35% from the stock's previous close.

A number of other research firms have also recently issued reports on BIDU. Wall Street Zen raised Baidu from a "sell" rating to a "hold" rating in a research report on Monday, May 25th. Zacks Research upgraded Baidu from a "strong sell" rating to a "hold" rating in a research note on Monday, June 15th. Barclays reduced their price objective on shares of Baidu from $128.00 to $124.00 and set an "equal weight" rating for the company in a research report on Monday. Nomura increased their price objective on shares of Baidu from $186.00 to $190.00 and gave the company a "buy" rating in a research report on Wednesday, May 20th. Finally, Morgan Stanley raised their target price on shares of Baidu from $135.00 to $140.00 in a research note on Tuesday, May 19th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Baidu currently has a consensus rating of "Moderate Buy" and an average target price of $163.11.

Baidu Stock Performance

Baidu stock traded down $5.79 during midday trading on Tuesday, reaching $107.60. 790,720 shares of the company's stock were exchanged, compared to its average volume of 2,599,035. Baidu has a 52 week low of $84.64 and a 52 week high of $165.30. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.85 and a current ratio of 1.85. The firm has a market cap of $36.61 billion, a price-to-earnings ratio of -893.88, a P/E/G ratio of 2.01 and a beta of 0.56. The stock's 50-day simple moving average is $123.96 and its 200 day simple moving average is $128.61.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Signature Equity Partners LLC acquired a new stake in shares of Baidu during the first quarter worth $25,000. Binnacle Investments Inc acquired a new position in shares of Baidu in the second quarter valued at about $29,000. Sankala Group LLC bought a new position in Baidu during the fourth quarter worth about $46,000. Brown Brothers Harriman & Co. increased its position in Baidu by 35.0% during the fourth quarter. Brown Brothers Harriman & Co. now owns 405 shares of the information services provider's stock worth $53,000 after acquiring an additional 105 shares during the period. Finally, UMB Bank n.a. raised its stake in Baidu by 25.9% in the 4th quarter. UMB Bank n.a. now owns 428 shares of the information services provider's stock worth $56,000 after purchasing an additional 88 shares in the last quarter.

About Baidu

Baidu, Inc, founded in 2000 and headquartered in Beijing, is a Chinese multinational technology company best known for operating one of China's leading internet search engines. The company built its business around online search and related advertising services, providing search, content aggregation and targeted ad placements to consumers and marketers across China. Baidu went public on the NASDAQ in 2005 and has since diversified beyond search into a broader technology and AI-focused portfolio.

Core products and services include the Baidu search platform and mobile app, Baidu Maps and Baidu Baike (an online encyclopedia), along with digital content initiatives.

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