Analysts at Pali Research today started coverage of Baidu.com, Inc. (NASDAQ: BIDU) with a Sell rating and a $90 price target. The brokerage firm cited "short- to mid-term uncertainties," which it says outweigh current opportunities for the Chinese Internet-search titan.

Chief among those uncertainties is Baidu.com's "controversial" business model. The search engine has recently come under fire for hosting search listings paid for by unlicensed medical and pharmaceutical concerns. Last week, the company added to Wall Street's concerns by slashing its fourth-quarter revenue outlook.

Pali Research joins the majority of analysts with its downbeat opinion of Baidu.com. Zacks reports three Holds, one Sell, and one Strong Sell, compared to just two Buy or better ratings. While the shares have already shed 70.8% year-to-date, Pali's $90 price target suggests that the brokerage firm expects additional downside. This estimate represents a discount of 21.1% to the stock's closing price on Friday.

Despite BIDU's negative price action, option players remain relentlessly bullish on the shares. During the past 50 days, traders on the International Securities Exchange (ISE) and the Chicago Board Options Exchange (CBOE) have consistently purchased more calls than puts on this Internet issue.

With the shares up more than 1% in early trading today, the bullish case for BIDU looks curiously compelling. However, considering the company's cloudy fundamental outlook, it's unclear just how long the shares can rely on round-number support at $110 before succumbing to the effects of gravity once again.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.