In-line 3Q07 and 4Q07 guidance showed the difficulties of operating in a nascent market as Baidu faced disturbances to its traffic and direct sales force integration in Shenzhen. We view the former as a one-time event and expect the company to execute through the latter. Midpoint of 4Q07 guidance still implies 109% YOY growth, which is an acceleration from 3Q07. Our estimates move up modestly, and our target is now $345. Our long-term fundamental outlook remains bullish and we believe Baidu should remain a core holding in any Internet investor's portfolio. Maintain Outperform rating.