CMB International Securities Maintains Buy Rating on Baidu (BIDU) Stock

Core Viewpoint - Baidu, Inc. (NASDAQ:BIDU) is recognized as a promising AI stock, with a maintained "Buy" rating and a price target of $148.40, despite expected revenue decline in its core business due to advertising sector transformations [1][2]. Group 1: Revenue and Growth Potential - The core business revenue is anticipated to decline due to ongoing changes in the advertising sector, but this is expected to be offset by robust growth in cloud services driven by increased demand for AI technologies [2]. - New growth drivers such as agent-related ads and digital human formats are emerging, which are projected to enhance Baidu's revenue [2]. Group 2: Financial Position - Baidu has significant cash reserves, with cash, cash equivalents, restricted cash, and short-term investments totaling RMB124.2 billion ($17.34 billion) as of June 30, 2025, which supports its valuation [2]. - Potential optimization in cash usage is also considered a factor that can bolster the company's financial standing [2].