BIDU: Expect 4Q15 Results To Be At Least In Line; 2016 Full Year Consensus Is Low; Maintain BUY Rating
BIDU will report 4Q15 results on Thursday, February 25 after the close of the market followed by an 8pm EST conference call. We do not have anything special to say about BIDU’s 4Q15, and we are expecting 4Q15 results to be at least in line but highly likely to be better than consensus expectation. However, we do believe the current consensus for 2016 revenue growth at 24.5% Y/Y is too low as BIDU’s subsidiaries including Nuomi and food delivery are likely to drive higher growth. This high growth can be the result of BIDU’s strong intention to list these subsidiaries in the local market. In order to have a better valuation, BIDU is pushing for more market share gains. We maintain our Buy rating.