Baidu (BIDU – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst on April 25. Analyst Alicia Yap from Citi maintained a Buy rating on the stock and has a $139.00 price target.
Alicia Yap’s rating is based on Baidu’s strategic advancements in AI technology and its potential for growth in the sector. During the Baidu Create 2025 event, the company unveiled several new AI products and updates, such as the Ernie 4.5 Turbo and Ernie X1 Turbo, which demonstrate significant improvements in cost efficiency and capability. These innovations highlight Baidu’s commitment to advancing AI applications and infrastructure, positioning it favorably within the rapidly evolving AI landscape in China.
Baidu’s leadership, including CEO Robin Li, has articulated a clear vision for AI’s role in future applications, emphasizing the importance of AI in practical use cases and enterprise adoption. The positive reception from meetings with Baidu’s CEO and CFO further reinforces confidence in the company’s direction. Despite some uncertainties regarding AI’s impact on Baidu’s core search business, the company’s proactive approach and strategic initiatives in AI development support the Buy rating, with an expected share price return of 55.3%.
Yap covers the Consumer Cyclical sector, focusing on stocks such as JD, Alibaba, and Meituan. According to TipRanks, Yap has an average return of 0.0% and a 38.96% success rate on recommended stocks.
In another report released on April 15, CMB International Securities also maintained a Buy rating on the stock with a $146.70 price target.