KeyBanc reiterated its "buy" rating with a price target of $255 on the stock.
"We believe investment in application pre-loading was responsible for the majority of margin deleveraging in 2013 and 2014, while investment in online video and online travel should create the largest margin headwinds in 2015," KeyBanc analysts said.
The estimates suggest that the core search margins for Baidu will be relatively stable in 2015, despite increases in spending on business opportunities like O2O and other transaction businesses, KeyBanc added.
With revenue growth of 33% and stable margins, KeyBanc views Baidu shares as very attractive.
Baidu is a Chinese-language Internet search provider (ISP) that serves three types of online participants including users, customers and Baidu Union Members.
Separately, 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, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."