Why Baidu (BIDU) Stock Is Higher Today

NEW YORK (TheStreet) -- Baidu (BIDU) was gaining 2.8% to $154.90 Monday following a positive note to investors from Pacific Crest.

In a note to investors Pacific Crest analyst Cheng Cheng said the Chinese search company is likely to report revenue in the high-end of its guidance in the first quarter. Baidu's guidance for the first quarter calls for revenue of between $9.24 billion and $9.52 billion. According to Cheng, "our conversations with industry contacts suggest the search advertising environment was slightly better than planned in Q1."

While Cheng believes Baidu will report revenue in the high-end of its guidance in the first quarter, the analyst says it likely won't continue through the second quarter. The increased revenue comes from video ad sales from iPartment4 and My Love from the Star, which may switch to other platforms as they chase "hot content."

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TheStreet Ratings team rates BAIDU INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate BAIDU INC (BIDU) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

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