Baidu upgraded to Buy at Nomura on chip-design potential, capital returns

As previously reported, Nomura upgraded Baidu (BIDU) to Buy from Neutral with a price target of $140, up from $135. The believes that Baidu’s 69% owned chip-design subsidiary, Kunlunxin, offers “substantial growth potential” and it notes that management is considering enhancing capital returns, which the firm sees as likely to “enhance the appeal of the stock.”