Freedom Capital Markets Lifts Baidu (BIDU) Price Target, Maintains Buy Rating

Baidu, Inc. (NASDAQ:BIDU) is one of the AI Stocks Gaining Attention on Wall Street. On January 7, Freedom Capital Markets analyst Roman Lukianchikov raised the price target on the stock to $160.00 (from $120.00) while maintaining a “Buy” rating. Firm analysts see positive signs from Baidu’s transformation efforts despite near-term margin pressure.

Analyst Roman Lukianchikov discussed how Baidu delivered quarterly results that generally surpassed expectations. The company’s ongoing transformation, which has had required higher capital expenditures, has begun yielding positive results despite intensifying competition in the company’s core business.

Even though elevated spending continues to pressure margins, the firm is confident that scaling Baidu’s less profitable venture may drive a recovery in profitability over the medium term.

“While margins may face further pressure in the coming quarters, successful scaling of some of the company’s less profitable initiatives could drive a recovery in profitability over the medium term. We issue a ‘Buy’ recommendation and raise our target price from $120 to $160.”

Baidu, Inc. (NASDAQ:BIDU) is a Chinese internet giant and AI pioneer, known for its noteworthy investments in artificial intelligence technology and its position as the dominant search engine within the country.

While we acknowledge the potential of BIDU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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