Alicia Yap, an analyst from Citi, maintained the Buy rating on Baidu (BIDU – Research Report). The associated price target remains the same with $139.00.
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Alicia Yap’s rating is based on Baidu’s better-than-expected financial results for the fourth quarter of 2024, particularly driven by strong performance in its AI cloud revenue, which grew by 26% year over year. This significant growth in cloud services suggests a promising direction for Baidu’s future profitability, as indicated by the company’s overall better-than-anticipated operating and net income figures.
Baidu also reported a slight increase in its monthly active users on its app, which totaled 679 million in December 2024, indicating steady user engagement. Despite the decline in online marketing revenue, the company managed to maintain profitability through disciplined cost management and operational efficiency. The projected share price return of 42.6% further supports the positive outlook and aligns with the favorable factors influencing the Buy rating.