UPDATE: Credit Suisse Initiates on Baidu As Leader of Mobile Search Revenue

In a report published Thursday, Credit Suisse analyst Dick Wei initiated coverage of Baidu Inc (NASDAQ: BIDU) with an Outperform rating and PT of $180.

Wei noted BIDU's fast accumulation of mobile traffic, mobile search and app distribution gateway acquisitions, and the strong pull on the company's mobile maps and browser. Credit Suisse reported we believe investors fail to recognise the fact that Baidu has leading mobile search revenue and traffic share and there are no meaningful mobile search competitors.” Though Baidu is struggling with mobile advertising, the company is taking steps with apps and programs such as Siteapp.

Credit Suisse expects a 10% increase in mobile revenue by the end of 2014 from 10% to 20%. The search market continues to grow and BIDU should continue to reap these results. Wei also noted “we expect mobile phone users to increase mobile search usage—as in the case of South Korea.”

BIDU closed at $150.68 on Wednesday.