CMB International Securities analyst Saiyi He maintained a Buy rating on Baidu (BIDU – Research Report) on February 19 and set a price target of $149.20.
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Saiyi He’s rating is based on the promising growth in Baidu’s cloud services, which have shown a significant year-over-year increase. The company’s cloud revenue notably exceeded market expectations, supported by strong performance in AI-related GPU cloud services. This growth trend is anticipated to continue into 2025, indicating a robust future for Baidu’s cloud operations.
Saiyi He also points out that while Baidu’s advertising revenue has faced some recent declines, there are signs of stabilization and potential for recovery. The integration of Generative AI in search results has improved user engagement, which could enhance future monetization. Additionally, despite some short-term challenges in profit margins due to increased investment in AI, a recovery is expected as the advertising business regains its momentum, contributing to a positive outlook for Baidu’s overall financial health.
In another report released on February 19, Bank of America Securities also reiterated a Buy rating on the stock with a $104.00 price target.
BIDU’s price has also changed slightly for the past six months – from $90.180 to $88.030, which is a -2.38% drop .