Update shared on10 Sep 2025
Fair value Increased 2.17%Analysts have modestly raised Baidu's price target to $101.76, citing ongoing monetization headwinds in online marketing due to the AI search transition, which are partially offset by strong momentum in the AI cloud business and a relatively attractive valuation.
Analyst Commentary
- Continued monetization headwinds in Baidu's online marketing business due to the transition toward AI-powered search.
- Solid momentum observed in Baidu's AI cloud business, partially offsetting weakness elsewhere.
- AI-driven transformation of search queries expected to negatively impact near-term revenue.
- Bullish analysts view the current share price as offering an "undemanding" or attractive valuation.
- Analyst adjustments reflect a balance between AI-related revenue challenges and growth opportunities in cloud and AI segments.
What's in the News
- Baidu completed repurchasing 22.7 million shares (6.5% of outstanding) for $2.23 billion under its existing buyback program.
- Baidu's principal place of business in Hong Kong changed to Central Plaza, Wanchai; headquarters and contact details remain unchanged.
- Baidu and Lyft formed a strategic partnership to deploy Baidu’s Apollo Go autonomous vehicles via the Lyft platform across key European markets starting with Germany and the UK, aiming for large-scale AV rollouts pending regulatory approval.
- Baidu and Uber entered a multi-year partnership to deploy Apollo Go autonomous vehicles on the Uber platform outside the U.S. and mainland China, with initial focus on Asia and the Middle East.
- Haijian He was appointed as Baidu’s Chief Financial Officer, bringing prior executive experience from Kingsoft Cloud and major investment banks.
Valuation Changes
Summary of Valuation Changes for Baidu
- The Consensus Analyst Price Target has risen slightly from $99.59 to $101.76.
- The Future P/E for Baidu has significantly fallen from 14.10x to 1.89x.
- The Consensus Revenue Growth forecasts for Baidu has significantly risen from 4.0% per annum to 4.7% per annum.
Disclaimer
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