Zacks Analyst Blog Highlights: Baidu.com, Google, Yahoo!, Sohu and Sina.

CHICAGO--(Business Wire)--Zacks.com announces the list of stocks featured in the Analyst
Blog. Every day the Zacks Equity Research analysts discuss the latest
news and events impacting stocks and the financial markets. Stocks
recently featured in the blog include: Baidu.com (Nasdaq: BIDU),
Google (Nasdaq: GOOG), Yahoo! (Nasdaq: YHOO), Sohu (Nasdaq: SOHU), and
Sina (Nasdaq: SINA).

See the latest posts to the Analyst Blog by visiting:
http://at.zacks.com/?id=2673

Here are highlights from Monday's Analyst Blog:

Baidu Still Expected to Outperform

Baidu.com's (Nasdaq: BIDU) financial results for the third quarter
again exceeded the market consensus. With China's most popular search
engine, Baidu has an advantage over rivals in China's fast-growing
online advertising market. In addition, Baidu continues to expand its
product lines to attract users and boost revenue. Although fierce
competition from Google (Nasdaq: GOOG) and Yahoo! (Nasdaq: YHOO)
prevents Baidu from building a wide economic moat, we think Baidu is
currently undervalued based on its growth prospects.

The Chinese market for paid search is expected to grow rapidly in
the next few years. Baidu has the advantages to leverage the favorable
trend of paid search as the company has announced impressive financial
results quarter after quarter. However, due to the ultra-competitive
nature of China's online paid search industry, a search technology
breakthrough by a rival could erode Baidu's competitive advantage.

Additionally, competition from search engine rivals including
Google, Alibaba/Yahoo, Sohu (Nasdaq: SOHU), and Sina (Nasdaq: SINA)
could steal market share from Baidu. Unexpected changes in Chinese
government regulation could also severely affect Baidu's business
model. Expansion in overseas market may not be as successful as
expected due to a lack of experience.

The stock is currently trading at 72x our estimated earnings per
share (EPS) for fiscal year 2008, which is significantly higher than
the industry mean and that of its Chinese peers. The stock is also
trading at 46.5x our estimated EPS for fiscal year 2009. Using a P/E
multiple of approximately 60x our fiscal year 2009 EPS estimate yields
a target price of $350, which we believe reflects the company's growth
prospects. Therefore, we are maintaining our Buy recommendation for
BIDU shares.

See the latest posts to the Analyst Blog by visiting
http://at.zacks.com/?id=2645

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performance. Recommendations and target prices are six-month time
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The performance of the Zacks Rank portfolios shown above for
annual and year-to-date periods are the linked monthly total returns
(price changes + dividends) of equal weighted hypothetical portfolios,
consisting of those stocks with the indicated Zacks Rank, assuming
monthly rebalancing and zero transaction costs. These are not the
returns of actual portfolios. The hypothetical portfolios were created
at the beginning of each month from Jan 1988 forward based on the
values of the Zacks Rank available to Zacks' clients before the
beginning of each month. The portfolios created monthly from 1988
through September 2006 exclude ADRS and are comprised of stocks that
have the indicated Zacks Rank and were covered by at least two
analysts at the time of the stocks inclusion in the portfolio.
Starting in October 2006 and going forward, the portfolios are
comprised of all stocks with the indicated Zacks Rank and do not
exclude ADRs, which is more reflective of the list of stocks that
customers will find on the Zacks web sites. 2007 returns are for the
period of Jan 1 - Jun 30, 2007. These performance numbers have been
audited from 1995 through 2003 by Autschuler Melovan, a division of
American Express Financial.

Zacks.com
Terry Ruffolo
Media Relations
312-265-9213
Visit: www.zacks.com

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