On July 27, after the close, Baidu Inc (BIDU) - Get Report beat on earnings per share and revenue expectations. Shares rocketed higher by about 10% on Friday, the following session. In Monday's early trading session, shares of Baidu are extending their gains, climbing 2.83% to $226.25.
It was a strong quarter, where operating income climbed 47% year over year. Analysts at Cantor Fitzgerald were quick to get on board the Baidu Express. They went from an underweight rating to an overweight rating, slapping a $260 price target on the stock, up big from its prior $156 price target.
With shares most recently closing at $220, this implies over 18% upside from current levels.
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Cantor Fitzgerald isn't alone, though.
Nomura analysts upgraded Baidu stock to a buy rating with a $241 price target. The analyst argues that new ad feeds should continue to accelerate revenue growth. Macquarie analyst Wendy Huang upgraded Baidu on its artificial intelligence efforts. She went from a neutral rating to outperform, raising her price target from $189 to $252, implying nearly 15% upside from current levels.
Even though Nomura's price target is the lowest of the three analysts, it still implies just over 10% upside. A continued rally would be impressive, given that Baidu stock is already up more than 30% so far in 2017. Most of those gains have come in the past month though, with shares up more than 20% since late-June.
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This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.