For Chinese stock Baidu (NASDAQ:BIDU), it has many of the same problems that several American stocks have. This is particularly true since many refer to Baidu as the Chinese Google (NASDAQ:GOOG) (NASDAQ:GOOGL). And in Thursday afternoon’s trading, Baidu took it on the chin, down over 6% at one point as issues of advertising and user counts stepped in to taint analyst perspective and send wary investors scuttling for the door.
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The troubles started when several different analysts stepped in to cut their price targets and third-quarter estimates, and for much the same reasons as several American stocks saw cuts. The advertising market in China is getting weaker, and worse, Baidu’s attempt to break into cloud-based systems has encountered several delays. That led to analysts like JPMorgan cutting its price target on Baidu from $200 to $185, and HSBC, via analyst Charlene Liu, cutting the price target from $168 to $160, citing macroeconomic issues and a rebuild of Baidu’s search functions.
What is the Target Price of Baidu?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BIDU stock based on 13 Buys and two Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average BIDU price target of $182.53 per share implies 68.08% upside potential.
