Baidu’s (BIDU) AI Push Offsets Weak Ads, Analyst Raises Target to $158

Group 1 - Baidu, Inc. has seen a price target increase from $115 to $158 by Benchmark analyst Fawne Jiang, maintaining a "Buy" rating due to strong AI momentum offsetting weak ad recovery [1] - Baidu's Q3 results indicate a weak main search ad business, with AI initiatives now accounting for over 40% of core revenue, driving growth in Cloud, AI applications, and AI-native marketing services [2] - The firm believes that Baidu's management is committed to scaling AI, supported by a competitive technology stack and rising structural adoption, justifying a higher valuation through a sum-of-the-parts approach [3] Group 2 - Search recovery is a near-term concern for Baidu, as it significantly impacts near-term earnings, but AI momentum and strategic execution are expected to drive upside potential [4] - Baidu is recognized as a leading Chinese internet giant and AI pioneer, with significant investments in AI technology and a dominant position in the domestic search engine market [4]