CMB International Securities analyst Saiyi He maintained a Buy rating on Baidu today and set a price target of $130.30.
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Saiyi He has given his Buy rating due to a combination of factors that highlight Baidu’s strategic positioning and growth potential. Despite a projected decline in revenue for Baidu’s Core business in the short term, the company is undergoing a significant transformation to integrate more AI-driven content, which is expected to enhance user experience and eventually drive monetization. This transformation is seen as a necessary step for long-term development, even though it may temporarily pressure earnings.
Moreover, Baidu’s cloud business is anticipated to maintain strong growth, with a 26% year-over-year increase in revenue expected, driven by rising demand for AI-related cloud services. Additionally, Baidu’s strategic partnership with Uber to deploy autonomous vehicles globally is viewed as a promising venture that could boost revenue and earnings over time. These initiatives, along with a refined target price reflecting short-term challenges, underpin the Buy rating as they position Baidu for sustainable growth in the future.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $97.00 price target.