In a report released today, Miranda Zhuang from Bank of America Securities maintained a Buy rating on Baidu, with a price target of $100.00.
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Miranda Zhuang’s rating is based on a combination of factors, including Baidu’s strategic positioning in AI and its promising robotaxi business. Despite a weaker advertising outlook, Baidu’s AI search penetration is expected to accelerate significantly, which could stabilize ad revenue by the end of 2025. The company’s valuation is considered attractive, trading at a low adjusted price-to-earnings ratio, with a substantial portion of its market capitalization in net cash.
Additionally, Baidu’s Apollo Go robotaxi business is expanding rapidly, with international partnerships and a cost-effective model that could enhance profitability. The strategic partnership with Uber and expansion into new markets like Dubai and Abu Dhabi highlight the growth potential of this segment. These factors contribute to the expectation of a positive stock price reaction to developments in AI and robotaxi initiatives, supporting the Buy rating.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $110.00 price target.