NEW YORK (TheStreet) -- Baidu (BIDU) shares are up 2% to $195.05 in pre-market trading on Monday after being upgraded to "overweight" from "equal weight" by analysts at Morgan Stanley (MS).
The firm vastly increased its price target to $144.70 from $93 due to increased revenue and that the Chinese language search engine exceeded the company's own guidance.
"In 2Q, mobile services contributed more than 10% of Baidu's total sales for the first time, driven by increasing adoption and monetization. The integration of PC and mobile bidding platforms have facilitated advertising on mobile with an improved customer experience," said analysts at the firm.
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 multiple 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, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."