Shares of Baidu Inc (ADR) (NASDAQ:BIDU) are down considerably along with the general U.S. market after Chinese markets sold off over 7% prior to being halted earlier today. The stock is already well off of its early December highs of over $214, and investors seems to now be wondering when the slide will stop. With a PE ratio of around 34, and growth expected for years to come, today’s selloff could be the perfect time to start a position.
As the Chinese market drops to open the year, Baidu Inc (ADR) (NASDAQ:BIDU) shares appear to be a rather compelling buy if you think that this is just a short term blip. While shares are well above where they were trading this last Fall, the company has recently announced plans for several new projects, including one which encompasses self-driving vehicles. It will be interesting to follow this stock over the next several trading days, especially if the Chinese market rebounds later this week. The stock is down 2.98% or $5.64 following the news, hitting $183.4 per share. Approximately 29,314 shares traded hands. BIDU shares have declined 4.24% since May 29, 2015 and are currently downtrending. It has underperformed the S&P500 by 1.22%.
From a total of 12 analysts covering Baidu (NASDAQ:BIDU) stock, 5 rate it a “Buy”, 2 a “Sell”, and 5 a “Hold”. This means that 42% of the ratings are positive. The highest target price is $219 while the lowest target price is $150. The mean of all analyst targets is $191.43 which is 4.38% above today’s ($183.4) stock price. Baidu was the topic of 13 analyst reports since July 28, 2015 according to the firm StockzIntelligence Inc. TH Capital maintained shares on October 27 with a “Buy” rating. Summit Research downgraded BIDU stock in a recent report from September 30 to a “Hold” rating. Finally, Oppenheimer maintained the stock with a “Outperform” rating in a report they issued on an August 3.
Baidu, Inc. is a Chinese-language Internet search well-known provider (ISP). The company has a market cap of $63.39 billion. Baidu serves three types of online participants, which include users, clients and Baidu Union Members. It has 34.49 P/E ratio. The Firm offers a Chinese-language search platform on its Website, Baidu.com.