Macquarie Lowers Price Target on Baidu (BIDU) Citing Sluggish Ad Business

Baidu Inc. (NASDAQ:BIDU) is among the

On February 26, Macquarie lowered its price target on Baidu Inc. (NASDAQ:BIDU) shares to $177 from $205 while maintaining an Outperform rating, saying that the price target reduction reflects sluggish performance in the company’s core advertising business. The analyst firm also cited the Kunlunxin spinoff and robotaxi expansion as key catalysts for the company.

According to Macquarie, Baidu Inc. (NASDAQ:BIDU) has strategically rebranded its revenue reporting to highlight AI monetization, which now accounts for 43% of total revenue, as AI cloud infrastructure continues to show solid growth momentum. The analyst note followed a February 4 announcement from Baidu Inc. (NASDAQ:BIDU) about its new $5 billion share repurchase program and a plan to implement its first-ever dividend policy.

Baidu Inc. (NASDAQ:BIDU) provides internet search, online entertainment, and online marketing services, including search-based, feed-based, and other services.

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