Citi Downgrades Baidu.com (BIDU) to Hold

Citi downgrades Baidu.com (Nasdaq: BIDU) from Buy to Hold. Price target dropped from $425 to $350.

Citi analyst says, "Increasing competition from the Alibaba Group might trim rev. growth by year end. Another concern is the magnitude and timing of possible capex for Baidu to enter China's C2C market, as well as its spending for the Japan ramp-up. Despite a recent pullback in the shares and our expectations for a solid 4Q07, we will be more comfortable with the risk/reward when we get greater clarity on these issues."
Baidu.com, Inc. (Baidu) is a Chinese-language Internet search provider. The Company conducts its operations principally through Baidu Online, its wholly owned subsidiary in Beijing, the People’s Republic of China.