US Tiger Securities Lowers Baidu Price Target to $100, Maintains Sell Rating

US Tiger Securities analyst Bo Pei CFA reiterated a Sell rating on Baidu with a price target of $100. Baidu's shares closed at $86.76. Pei CFA has an average return of -15.6% and a 31.40% success rate. The analyst consensus is Moderate Buy with a price target consensus of $102.79.

US Tiger Securities analyst Bo Pei CFA has reiterated a Sell rating on Baidu (BIDU) with a price target of $100. This decision follows a series of mixed signals from the company's recent financial performance and market developments. Baidu's shares closed at $86.76 on July 2, 2025, reflecting the impact of the analyst's downgrade.

The company has been facing significant headwinds in its core advertising business, which saw revenue decline 15% year-over-year in the second quarter of 2025. However, Baidu's non-advertising revenue has been gaining traction, now representing approximately 40% of Baidu Core, driven by AI Cloud's 34% year-over-year growth and subscription-based revenue strength [2].

Baidu's AI Cloud services have been a growth engine, with a 27% increase in AI cloud revenue in the second quarter of 2025. The company's autonomous driving service, Apollo Go, has also shown strong performance, with fully driverless rides increasing 148% year-over-year. These non-advertising revenue streams have been bolstering the company's financial health despite the challenges in the advertising sector [3].

Analysts have cited ongoing ad weakness and delayed GenAI monetization as reasons for the price target reduction. However, Baidu's strong financial position, with a current ratio of 2.29 and an Altman Z-Score of 7.04, indicates robust financial health [2]. The company's net cash position of $63 per share and a 5% annual buyback program provide additional downside support [3].

The market sentiment towards Baidu remains mixed, with the analyst consensus being Moderate Buy with a price target consensus of $102.79. The upcoming launch of ERNIE 5.0, which will enhance multimodal search and digital human technology, is eyed for growth potential [3]. Despite near-term earnings pressure, Baidu's strategic focus on AI and autonomous driving, along with its restructuring efforts, positions it for long-term growth.

References:
[1] https://www.reuters.com/technology/baidu-chip-design-unit-kunlunxin-wins-over-139-million-orders-china-mobile-2025-08-22/
[2] https://www.investing.com/news/analyst-ratings/benchmark-lowers-baidu-stock-price-target-to-115-on-ad-growth-headwinds-93CH-4204479
[3] https://www.benzinga.com/analyst-stock-ratings/reiteration/25/08/47265925/baidus-ai-cloud-robotaxi-push-gain-speed-even-as-ad-business-slows-analyst