花旗降百度目标价至138美元 维持买入评级

Group 1 - Citi has lowered the target price for Baidu to $138 while maintaining a buy rating [1] - In Q1 2023, Baidu's cloud service revenue grew by 42% year-on-year to 6.7 billion RMB, driven by demand from project-based and subscription-based enterprise clients [1] - The report indicates that while subscription revenue is highly sustainable, project-based revenue volatility may impact cloud service revenue forecasts for Q2 and the fiscal year [1] Group 2 - Baidu's AI transformation in its search business accelerated in Q1, with AI agent revenue accounting for 9% of core advertising revenue, negatively affecting traditional search ad revenue [1] - Core advertising revenue is expected to decline by 10% year-on-year in Q2 and Q3, with a slowdown to a 5% decline in Q4 [1] - Cloud service profit margins are projected to stabilize in the low teens, but investments in AI and the impact on search ad revenue will pressure operational profit margins in the coming quarters [1]