Baidu, Inc. (NASAQ: BIDU): Collins Stewart on Tuesay initiated coverage on the company with a Buy rating an a price target of $185. In a research note to clients the firm stated, "Well positioned to grow at 40%-50%+ rates for many years - BIDU should demonstrate strong growth driven by multiple factors: 1) China's online advertising market expected to grow at 45% CAGR from 2010-2013; 2) Search mix of online advertising increasing from 34% currently to 45%-50%, similar to US levels and 3) Baidu gaining share within search, as Google (Nasdaq: GOOG) retreats from mainland China."
Google Inc. (NASDAQ: GOOG): Collins Stewart this morning initiated coverage on Google with a Buy rating and a price target of $680. In a research note to clients, the firm stated "Google should grow at a 17% CAGR for the next 2 years. Key growth drivers are: 1) 14% CAGR growth in global online advertising due to secular shift from offline to online; 2) international search growth driven by growing internet penetration; 3) Google's exposure to high growth pockets of display like online video (YouTube) and ad exchanges (DoubleClick) and 4) incremental search volume from mobile devices. In addition, Android operating system is a $5B+, high margin opportunity that is yet to be."
Amazon.com (NASDAQ: AMZN): Collins Stewart initiate coverage on the company with a Neutral rating an a price target of $180. In a research note to clients, the firm stated, "Amazon has strong top-line growth prospects over the next 5-10 years, driven by share gains within e-Commerce, geographic and category expansion and high single digit or better e-Commerce growth rate. We also see upside in the short term on incremental revenues from Kindle device and e-books as well as share gains in physical Books market on competitor store closures...Stock fully valued- discounting both revenue growth and margin expansion...Any incrementally negative news (from economic slowdown, state sales taxes, Apple (NASDAQ: AAPL) gaining e-book share) will likely cause a stock decline, while the upside is already priced in."
Tesoro Corporation (NYSE: TSO): Barclays upgraded the stock to Overweight from Equal Weight to Overweight. The firm lifted its price target and raises their price target from $32 to $37.
Solazyme (NASDAQ: SZYM): Goldman Sachs initiate coverage on the company with a Buy rating and a price target of $31. In a research note to clients, the firm stated, "we think Solazyme's tailored oils can sustain higher margins relative to commodity, plant-based oils. We view the main near-term market opportunity as oleochemicals, but with additional opportunities in food, skin care, diesel, and jet fuel."
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