Benchmark Co. analyst Fawne Jiang has maintained their bullish stance on BIDU stock, giving a Buy rating yesterday.
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Fawne Jiang has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Baidu. While the company faces ongoing difficulties in its core advertising segment, primarily due to the integration of generative AI into its search results, there is a notable shift towards autonomous driving as a potential growth area. Baidu’s strategic partnership with Uber to expand its Apollo Go autonomous vehicle service globally is a significant step that could enhance the company’s commercial prospects over time.
Despite the current pressures on advertising revenue, with forecasts adjusted downward for the near term, Baidu’s advancements in AI and autonomous driving present potential catalysts for future growth. The company’s substantial cash reserves also provide a buffer and opportunity for long-term value creation. Jiang believes that while execution is crucial, the emerging opportunities in autonomous driving and AI could lead to a positive reevaluation of Baidu’s stock value, justifying the Buy rating.
Jiang covers the Consumer Cyclical sector, focusing on stocks such as Trip.com Group Sponsored ADR, Macy’s, and JD. According to TipRanks, Jiang has an average return of 17.2% and a 56.52% success rate on recommended stocks.
In another report released yesterday, US Tiger Securities also maintained a Buy rating on the stock with a $100.00 price target.