<Research> BOCI Increases Baidu's Target Price to USD 187, Anticipates Quick Value Unleashing from AI Full-Stack Features

The analyst rating for BIDU-SW (Baidu) has been maintained as "Buy" by Citi due to the company's demonstration of its advanced full-stack technology capabilities, particularly in AI infrastructure. The launch of Ernie 5.0, which features 2.4 trillion parameters and utilizes native full-modal unified modeling technology, is expected to enhance the integration and optimization of multimodal data. This strong technological foundation, along with the company's developments in chips, cloud, models, and intelligent agents, supports Citi's positive outlook and target price of USD 186 for the stock.

BofA Securities issued a "Buy" rating for BIDU-SW (09888.HK) based on several key factors. They believe that the company's 4Q25 results will align with expectations, with a recovery in core business anticipated from the previous quarter. The forecast includes a 7% quarter-over-quarter growth in core revenue and a 17% increase in adjusted operating profit. Additionally, while revenue growth for BIDU-SW's AI cloud infrastructure is expected to slow due to a high base, the overall full-year growth is projected to remain strong, with over 30% year-over-year growth. The firm also highlighted BIDU-SW's strong performance in China's AI sector and identified potential catalysts and risks, such as the listing of Kunlunxin and shareholder return plans. Consequently, they maintained their target prices for BIDU-SW's H-shares and US stock, reinforcing their positive outlook.