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Investing.com - Bernstein SocGen Group raised its price target on Baidu (NASDAQ:BIDU) to $150.00 from $90.00 on Friday, while maintaining a Market Perform rating on the Chinese tech giant. The stock, currently trading at $132.61 with a market cap of $46.55 billion, has delivered an impressive 60.6% return year-to-date. According to InvestingPro analysis, Baidu appears undervalued based on its Fair Value estimate.
The price target increase reflects Baidu’s recent stock re-rating, driven by the company’s more positive messaging around capital structure and plans to unlock value within the group, according to Bernstein. Trading at a P/E ratio of 8.82 and maintaining a "GOOD" Financial Health Score, the company has attracted a favorable consensus rating of 1.85 from analysts, indicating a Buy recommendation.
Bernstein specifically highlighted Baidu’s discussions about exploring capital actions, including potential listings for its Robotaxi and other new ventures, as well as plans to re-categorize its AI businesses to provide clearer visibility into growth segments.
The research firm values Baidu at approximately $150 per share, with $100 attributed to core income-generating businesses and $50 to new business ventures such as Robotaxi, along with the company’s net cash and investments position.
Bernstein noted that Baidu’s acknowledgment of "long held investor angst about lack of shareholder returns" and signals of taking action appear sufficient to prompt investors to reconsider the potential value of Baidu’s various business segments.
In other recent news, Baidu has been the focus of several analyst updates, primarily due to its advancements in artificial intelligence. CLSA raised its price target for Baidu to $160, highlighting growth in areas such as Apollo Go and AI cloud services. Goldman Sachs also increased its target to $154, acknowledging the company’s potential despite a projected decline in core operating profit in the third quarter of 2025. Jefferies joined in by setting a new target of $157, driven by Baidu’s AI developments and partnerships with large customers.
Meanwhile, Susquehanna raised its price target to $95, noting mixed second-quarter results but positive momentum in Baidu’s AI cloud segment. In contrast, Benchmark lowered its target to $115, citing challenges in Baidu’s advertising business, which experienced a 15% revenue decline in the second quarter of 2025. These updates reflect the diverse perspectives of investment firms on Baidu’s current and future performance.
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