Baidu Stock Has 70% Upside, According to 1 Wall Street Analyst

(NASDAQ: BIDU) stock could turn out to be a lucrative buy if a recent analysis of the big Chinese tech company is any indication. One analyst just cut her price target on the shares but still thinks they're quite the bargain. That's because the stock's valuations remain highly attractive, and the company is poised to grow more robustly than the domestic economy.

In early April Citigroup's Alicia Yap reduced her price target on Baidu stock to $176 from her previous $181. Since the new target remains more than 70% above the latest American Depositary Receipt (ADR) closing price, she maintained her buy recommendation.

The price drop is related to Yap's reduced estimate for ad revenue from companies in several important sectors of the Chinese economy, including real estate -- a particular trouble spot for China these days -- and automotive. While the analyst is still anticipating that Baidu will show ad revenue growth on a year-over-year basis when it reports its first-quarter earnings, that increase should only come in north of 2%.

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Source Fool.com