Baidu Rises With Positive Analyst Note
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Associated Press
NEW YORK (AP) - Shares of Chinese search engine operator Baidu.com Inc. rose Tuesday after a Citi Investment Research analyst said investors should take advantage of a recent sell-off of its stock.
Baidu's American Depositary Shares added $39.95, or 13.3 percent, to end at $341.45. In the past year, the stock has moved between $92.80 and $429.19.
In a Tuesday client note, Citi Investment Research analyst Jason Brueschke reiterated his "Buy" rating and $425 price target for the stock, saying that the stock has lost about 30 percent of its value in five days in a sell-off that appears overdone.
Baidu's shares rose sharply over the past several months, hitting an all-time high of $429.19 last Tuesday before heading into a steep decline.
"The sell-off appears to have been caused by a disappointing outlook from Cisco last week for its U.S. enterprise business," he said.
The stock's drop was punctuated by a downgrade last Thursday from RBC Capital Markets analyst Stephen Ju, who lowered it to "Sector Perform" from "Outperform" based on its valuation.
Ju predicted in a client note that Baidu's rise was due partly to the frenzy surrounding the initial public offering of Chinese e-commerce portal Alibaba.com Ltd. and the idea that a company like Baidu should be worth more than one like Alibaba.com.
In his Tuesday note, Brueschke said Baidu's fundamentals are still strong.
"Accordingly, we encourage investors to monitor Baidu closely and to be actively taking advantage of this and perhaps further near-term weakness, to build/add to positions," he wrote.
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CB8BFA bin ich gestern leider etwas spät (KK 2,00)rein
weil ich vorher noch Zeit & Geld mit EUR/YEN short verplempern mußte.
DAX Put auch mit etwas minus raus.
VW und Porsche dann doch wieder in der Spur - bei VW ist die leichte Schwäche wohl mehr auf den Lokführerstreik zurückzuführen.
Sobald da Entwarnungen kommen, gehts weiter up.
Ganz heiß noch:
AA0MX9 greetz & good Trades
C_Profit