Macquarie Increases PT on Baidu (BIDU) Stock, Maintains Neutral Rating

On May 21, Macquarie increased the price target on Baidu, Inc. (NASDAQ:BIDU) from $83 to $85, maintaining its Neutral rating on the stock.

Ellie Jiang from Macquarie raised the price target on Baidu following strong Q1 2025 results that were mainly driven by robust AI cloud demand. The company posted a total revenue of $4.51 billion, exceeding estimates by $207.89 million. The AI Cloud revenue soared by 42% year-over-year, accounting for almost 26% of the company’s core revenue. This indicates a strong growth in this segment.

Core search weakness will potentially persist given the ongoing product revamp, added Jiang. The analyst also mentioned Baidu’s growing Robotaxi market, which continues to expand beyond China. Baidu’s Apollo Go autonomous ride-hailing service experienced 100% driverless operations in China during Q1 and expanded to international markets, including Dubai and Abu Dhabi. Jiang cited that Robotaxi’s global expansion is still outweighing profitability for now. Macquarie remains on the sidelines while raising Baidu’s 2025 adjusted EPS by 8%, suggesting a stronger growth outlook for the AI Cloud segment.

Baidu, Inc. (NASDAQ:BIDU) is a Chinese Internet search and AI cloud service provider. Often referred to as Chinese Google, Baidu allows users to search for anything online in the Chinese language. The company operates through two segments, the Baidu Core segment and the iQIYI segment.

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