Major Bank Ratings | DBS: Baidu’s Q4 Revenue Expected to Resume Sequential Growth, Target Price Raised to HKD 206

Glonghui, January 21｜According to a report by DBS Group Research analysts, Baidu’s fourth-quarter revenue is expected to resume quarter-on-quarter growth. The narrowing year-on-year decline in its online advertising business and the robust growth of its AI cloud infrastructure business revenue may support profitability. In addition, the computing intensity and demand for its AI chip business Kunlun Chip may also increase in the fourth quarter. These factors may have driven quarter-on-quarter growth in gross profit and non-GAAP operating profit. DBS maintains a “Buy” rating on Baidu’s stock, but raises its H-share target price from HK$175 to HK$206 and its ADR target price from US$177 to US$211.