Baidu price target lowered to $115 from $120 at Benchmark

Benchmark analyst Fawne Jiang lowered the firm’s price target on Baidu (BIDU) to $115 from $120 and keeps a Buy rating on the shares. Baidu remains in the midst of a strategic transition as its core ad business faces growth headwinds, while non-advertising revenue continues to gain traction, the analyst tells investors. The combination of soft ad trends and continued AI investment may weigh on margins near term, but the firm believes that the upcoming launch of ERNIE 5.0 and rising engagement with AI-powered search “reinforce Baidu’s pivot toward a more diversified, innovation-led model,” the analyst added.