BofA lowered the firm’s price target on Baidu (BIDU) to $100 from $104 and keeps a Buy rating on the shares. Baidu’s Core Q1 revenue growth of 7% year-over-year beat consensus on strong cloud growth, driven by surging AI demand and Baidu’s ability to offer industry-leading models and AI solutions at highly competitive pricing, the analyst tells investors. However, despite the “aggressive” AI search rollout, monetization may take time, the analyst added. The firm lowered its 2025 and 2026 adjusted net profit views by 6% and 4%, respectively, because it expects bigger ad declines this year, partially offset by faster cloud growth.
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