Goldman Sachs: Baidu.com Fair Value at about $27 Per Share
From Forbes.com: Baidu.com Fair Value Seen At About $27 Per Share
""We are extremely positive on the market opportunity in China and Baidu's commanding leadership position in search, but we cannot justify the valuation," Goldman said. "Our implied fair value is about $27; a more-aggressive scenario suggests about $45." The $45 price target is still 60% below current levels, Goldman noted." "
"The research firm expects Baidu to generate about 35% revenue growth and about 40% earnings-per-share growth from 2006 to 2009 (...) ."
""The most notable risk is the nascent nature of the paid search market in China," the firm said. "With a Chinese search market of less than $200 million in revenue in 2004, the drivers of success remain uncertain.""
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