Baidu's AI Focus Expected To Drive Stable Margins And Revenue Boost, Analyst Foresees Growth
Portfolio Pulse from Anusuya Lahiri
Goldman Sachs analyst Lincoln Kong has reiterated a Buy rating on Baidu, Inc (NASDAQ:BIDU) with a price target of $174, citing the company's focus on AI investments and cost discipline. Baidu's ad business is expected to see a high-single-digit year-on-year recovery in Q4 2023, with additional AI revenue. The cloud service is projected to recover with double-digit revenue growth in Q4 2023. The company's core margin is expected to remain stable in 2024, and Q4 revenue and net profit are projected at RMB35.65 billion and RMB6.44 billion, respectively. BIDU shares were down 1.18% at $118.22 on the last check.
November 29, 2023 | 6:14 pm
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Goldman Sachs analyst Lincoln Kong has given Baidu a Buy rating with a $174 price target, highlighting the company's AI investment strategy and cost discipline as drivers for stable margins and revenue growth.
The positive outlook from Goldman Sachs, including a high price target and expectations of revenue recovery and stable margins due to AI investments, is likely to instill confidence in investors and could lead to a short-term positive impact on BIDU's stock price.
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