Baidu: Strong Mobile Presence, JP Morgan Raises TP To $210 you think Baidu (BIDU), which commands around 70% PC search market share, is doing well on PC, J.P. Morgan thinks Baidu is doing even better on mobile. Baidu has built a stronger ecosystem on mobile than on PC, says analyst Alex Yao: Baidu’s mobile eco-system consists of: One of the largest app distribution channels in China (e.g. 91 Wireless, Baidu mobile assistance, Hi Market, etc); A city life service apps portfolio (e.g. Baidu Map, Baidu mobile Tieba, etc). These apps open the door for online to offline transactions; A utility-based app portfolio (e.g. Baidu Palm, Baidu mobile security, Baidu mobile browser, Baidu Music, Baidu Video, etc). As a result, Baidu can reach a wider Chinese audience than it could with PCs, thanks to the democratization of smartphones there. In addition, Baidu can defend its mobile search market share better with an ever-reaching ecosystem to protect its territory. J.P. Morgan has raised its December 2014 price target to $210. This price target implies 29 times the broker’s 2014 earnings estimate and 20x 2015 earnings, and a PEG ratio of Fuente: blogs.barrons J.J. Berrocal GVC Madrid | ||||
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