Baidu: Credit Suisse Ups Rating To Neutral; Stock Rallies [Voices]

February 1st, 2010

By Eric Savitz, Blogger and Columnist, Barron’s, Tech Trader Daily

Baidu (BIDU) shares are trading higher this morning after Credit Suisse analyst Wallace Cheung upped his rating on the stock to Neutral from Underperform.

Cheung’s upgrade reflects his theory on how the Google (GOOG) dispute with China will play out:

Google will stay in China…
…but its business outlook there will become more challenging…
…and Google advertisers will seek diversification.
He sees Google’s share of the China revenue market from search to drop to 20 percent in 2011 from 31 percent in 2009. He sees Baidu’s market share stabilizing in the 45-47 percent range.

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