Bank of America Securities analyst Miranda Zhuang has maintained their bullish stance on BIDU stock, giving a Buy rating on November 23.
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Miranda Zhuang has given her Buy rating due to a combination of factors influencing Baidu’s strategic positioning and financial health. Baidu’s self-developed AI infrastructure, including a competitive AI chip and leading robotaxi technology, positions the company as a significant beneficiary in the AI sector. The company’s AI-powered businesses have shown impressive growth, contributing significantly to Baidu Core’s total revenue, and are expected to continue offsetting declines in legacy businesses.
Baidu’s valuation is considered attractive, with a low price-to-earnings ratio excluding cash, and substantial cash reserves that provide a financial safety net. The company is also expected to enhance shareholder returns through a more stable buyback program and potential dividend policies. Furthermore, Baidu’s AI Cloud, robotaxi, and AI-native advertising businesses are valued at a significant aggregate, with additional upside potential from the Kunlun AI Chip business, reinforcing the Buy rating.
Zhuang covers the Communication Services sector, focusing on stocks such as Baidu, Weibo, and AutoHome. According to TipRanks, Zhuang has an average return of -6.1% and a 35.59% success rate on recommended stocks.
In another report released on November 23, J.P. Morgan also upgraded the stock to a Buy with a $188.00 price target.