Benchmark Raises Baidu (BIDU) Price Target to $215, Citing Kunlun Spinoff and Robotaxi Value

Baidu, Inc. (NASDAQ:BIDU) is one of the Must-Watch AI Stocks on Wall Street. On January 12, Benchmark analyst Fawne Jiang raised the price target on the stock to $215.00 (from $158.00) while maintaining a “Buy” rating. Firm analysts view the Kunlun spinoff and Robotaxi valuation reset as key catalysts for SoTP re-rating.

Baidu recently announced  a proposed spinoff and separate listing of Kunlunxin (Beijing) Technology Co., Ltd., a non-wholly owned subsidiary of the Company, on the Main Board of the Hong Kong Stock Exchange. Kunlunxin is Baidu’s artificial intelligence chip subsidiary that Baidu plans to spin off as more domestic chipmakers are seeking funding amid Beijing’s drive for semiconductor self-sufficiency.

According to Benchmark, their price target raise for Baidu is reflection of clearer catalysts that will allow unlocking value from Baidu’s underappreciated assets, leading to a SoTP re-rating. The AI chip subsidiary Kunlun spin-off is particularly seen as a significant catalyst by the firm.

“In particular, we view the upcoming Kunlun spin-off as a major catalyst and have updated our SoTP to incorporate Kunlun’s value, which was not previously reflected in our valuation. We have also revised our Robotaxi valuation following recent capital raising.”

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.

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