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From Staff Reports
Shares of Chinese search engine Baidu (BIDU) hit a record high yesterday (Monday) after an RBC Capital Markets analyst increased his price target for the stock on expectations for a solid third quarter, according to The Associated Press.
In a note to clients Monday, RBC analyst Jordan Rohan raised his price target from $302 to $333 and reiterated his “outperform” rating for the stock. Rohan believes the company will be able to bring on as many or more advertisers during the third quarter as it did in the second.
Also, while the Chinese search market remains strong, attempts by U.S.-based Google Inc. (GOOG) to seize shares of the market have not affected Baidu’s stranglehold. According to a survey released by China IntelliConsulting Corp. Baidu and Google comprise 92.4% of total primary users in the Chinese online search market. While Google is gaining ground, it seems to be at the expense of its smaller competitors.
Baidu stock closed up 7.67% on the day. It has climbed more than 120% in the first eight months this year.