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Investing.com - Susquehanna raised its price target on Baidu (NASDAQ:BIDU) to $110.00 from $95.00 on Monday, while maintaining a Neutral rating on the Chinese tech company’s stock. The new target aligns closely with Baidu’s current trading price of $110.95, though InvestingPro data suggests the stock may be undervalued based on its Fair Value assessment.
The price target adjustment follows Baidu’s third-quarter results, which revealed continued weakness in the company’s online marketing business, partially offset by strength across its artificial intelligence product suite. This weakness is reflected in Baidu’s revenue decline of 2.6% over the last twelve months.
Susquehanna noted that Baidu anticipates further pressure on both top and bottom lines from AI search monetization, though the company expects margins to begin improving.
The firm highlighted Baidu’s optimism regarding its numerous fast-growing AI products, which have helped counterbalance challenges in its core advertising business.
Despite the price target increase, Susquehanna maintained its Neutral stance, stating that while Baidu’s valuation "remains undemanding," the stock is "likely to remain rangebound" in the near term.
In other recent news, Baidu Inc. reported its third-quarter 2025 financial results, showing a mixed performance with a decline in overall revenue but notable growth in its AI Cloud segment. The company recorded total revenues of RMB 31.2 billion, marking a 7% decrease compared to the previous year. However, the AI Cloud revenue experienced a significant increase of 21%, reaching RMB 6.2 billion. In light of these developments, Baidu’s strategic focus remains on AI technologies and robotaxi expansion.
Analyst firms have responded to these results with updated evaluations. JPMorgan upgraded Baidu’s stock rating from Neutral to Overweight, raising the price target from $110.00 to $188.00, citing cloud and AI as pivotal growth engines for the company. Benchmark also adjusted its price target for Baidu from $115.00 to $158.00, maintaining a Buy rating due to the company’s growing artificial intelligence initiatives. These recent developments underscore a shift in Baidu’s growth narrative, particularly emphasizing the potential of its AI and cloud services.
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