Baidu news on Wednesday about the company getting a downgrade has BIDU stock taking a hit.
The bad news for Baidu (NASDAQ:BIDU) comes from Oppenheimer analyst Jason Helfstei. This has the analyst dropping BIDU stock to a “Perform” rating. The previous Oppenheimer rating for the stock was “Outperform.”
“We now expect [Baidu] to invest even more in key strategic areas (content, feeds, short video and cloud), which will not benefit revenue until late 2019 or early 2020,” the Oppenheimer analyst said in a statement obtained by MarketWatch.
It’s also worth noting that there was a change to Oppenheimer price target for BIDU stock that goes along with the recent Baidu news. This has Helfstei removing his price target of $205 for the stock. BIDU was trading at $181.00 when markets closed on Tuesday.
The bad Baidu news doesn’t stop there. Credit Suisse analyst Thomas Chong is also weighing in on the Chinese tech company today. Chong didn’t drop BIDU stock, but is instead reaffirming his current rating of “Outperform” for it.
What’s more interest in the new price target from the Credit Suisse analyst. Chong’s new price target for BIDU stock is $221.00. The previous price target was $226.00. This has the new price target sitting at 22% above yesterday’s closing price, StreetInsider.com notes.
BIDU stock was down 2% as of noon Wednesday, but is up 11% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.
