Analyst Miranda Zhuang from Bank of America Securities maintained a Buy rating on Baidu and keeping the price target at $180.00.
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Miranda Zhuang has given his Buy rating due to a combination of factors tied to Baidu’s operational recovery and AI-driven growth outlook. He expects Baidu Core to show sequential improvement in the fourth quarter of 2025, with both revenue and operating profit rebounding from the prior quarter and advertising revenue moderating its year-over-year decline. While AI Cloud infrastructure growth may decelerate in late 2025 because of a high comparison base, he still projects strong full-year expansion above 30% and continued positive operating cash flow.
Miranda Zhuang’s rating is based on expectations that 2026 will mark a broader recovery in advertising and profitability, supported in part by cost controls such as recent layoffs, while Baidu’s consumer AI services scale off its large search user base. He sees additional upside from expanding robotaxi operations overseas and from robust demand for AI cloud services that should continue to outpace the broader industry. He also highlights visible catalysts including the planned spin-off and listing of Baidu’s Kunlun Chip unit, shareholder return initiatives, and a potential Hong Kong dual-primary listing. In his view, Baidu’s full-stack AI capabilities, strong position in domestic AI chips, and a valuation multiple below major peers like Alibaba and Tencent together justify maintaining a Buy rating and a price objective of $180 per share.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $181.00 price target.