The Road To Madness: B of A Sets $400 Price Target On Baidu (BIDU)

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By Douglas A. McIntyre Published
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Bank of America set a $400 price target on Chinese search engine company Baidu (BIDU), according to Minyanville. JP Morgan started the stock at "overweight". All of this noise has moved that shares up 7% today to $303 dollars and change, a 52-week high.

That puts Baidu shares up more than 200% over the last six months. The company now trades for more than 61 times sales. Over at Google (GOOG) that number is under 14x.

China madness is driving Baidu higher. Last July 25, the company announed revenue had slightly more than doubled to $53 million. Net income rose 147% to $19 million. The numbers are nice, but they demonstrate how small the revenue attached to the search market in China is.

Baidu already has competition from Google. And, it is likely that the US company is willing to spend hundreds of millions of dollars to move into first place in search in the world most populated country. That makes 61 times revenues seem fairly high.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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