Baidu (BIDU); HK 9888

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4 Reasons to Buy Baidu Stock Like There's No Tomorrow

by Rick Munarriz

1. Baidu is cheap
2. The beats keep coming
3. Tech is still a thing at Baidu
4. China's headwind can be a tailwind

Source: The Motley Fool

https://finance.yahoo.com/news/4-reason ... 00921.html

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<Research>G Sachs Chops BIDU-SW (09888.HK) TP to $157, Cautious on Ads Biz amid Uncertain Macro-econ

Goldman Sachs released a research report expecting BIDU-SW (09888.HK)'s 1Q24 revenue growth to be weak, mainly due to prudence approach on advertising business in the uncertain macro economy and a high base in 1H23.

However, Goldman Sachs expected 2H24 growth to accelerate, covering the base issued in 2Q24.

Related News: UBS Trims Baidu (BIDU.US) TP to US$170 as Macro Environment Weighs on Short-term Core Growth

BIDU-SW remains on track to execute its generative AI solution, which is expected to bring in revenue of RMB3.6 billion this year, Goldman Sachs said.

Goldman Sachs expected a 2% YoY growth in the Group's 1Q24 core sales, and a 3% YoY fall in operating profit, and lowered its 2024/ 2025/ 2026 revenue forecasts for the Group by 3%/ 4%/ 5%, respectively.

Goldman Sachs also reduced its net profit forecasts by 5%/ 6%/ 8% for 2024/ 2025/ 2026 each, and chopped its target price from $167 to $157, with rating kept at Buy.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

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<Research>CCBI Drops BIDU-SW (09888.HK) TP a Bit to HK$138.1, Expects Slow Ad Recovery & Stable Cloud Growth in 1Q

CCBI issued a research report, lowering its core revenue forecast for BIDU-SW (09888.HK) by 4% in 1QFY24, reflecting the slow recovery of advertising and the shrinking scale of Xiaodu's hardware business.

The broker also trimmed the group's revenue forecasts for FY24/FY25/FY26 by 1%, 1%, and 2% respectively.

The broker expected BIDU's revenues from advertising and cloud businesses to grow 2% and 9% respectively in 1Q, with core revenue elevating 2% YoY to RMB23.5 billion.

Other business revenue may fall by 10% due to lower revenue from its Xiaodu subsidiary.

Related News: G Sachs Chops BIDU-SW (09888.HK) TP to $157, Cautious on Ads Biz amid Uncertain Macro-econ

In 4Q23, generative AI and foundation models contributed RMB270 million, or 4.8%, to BIDU's overall cloud revenue and the broker expected that the contribution from AI will increase and become the main driving force of the group's overall cloud business in FY24.

CCBI trimmed its target price for BIDU's H-shares from HK$139.36 to HK$138.1 and lowered its target price for BIDU's US shares from US$143.3 to US$142.

The broker maintained the Outperform rating for both shares.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

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<Research>Macquarie Expects BIDU-SW (09888.HK) 1Q Rev. to Slow down, but Earnings Resilient; Rating Outperform

Macquarie noted in a report that BIDU-SW (09888.HK) is expected to report modest revenue growth in 1Q24, mainly due to seasonal factors and advertising demand, with core advertising revenue expected to grow by 1% YoY to RMB16.7 billion, which is 3% lower than the market's consensus forecast.

Macquarie believed BIDU's AI capabilities will continue to drive advertising effectiveness, but the macroeconomic environment is still weighing on core advertising revenue growth.

The broker added that advertising demand from health and e-commerce was resilient, while spending on automotive and property advertising was weak.

Related News: Daiwa: BIDU-SW (09888.HK) Mar Ad Recovery Misses Forecast; 1Q24 Core Rev. Growth Forecast Cut

According to the report, BIDU's cloud business is likely to see slower growth in 1Q due to seasonal factors, with revenues estimated to rise 8% YoY.

However, the group's investment strategy has been stable in the past, and the broker is confident in its earnings outlook, with an adjusted operating profit margin of 21% expected in the quarter.

Macquarie maintained its EPS forecast on BIDU for 2024, but trimmed that for 2025 by 2% to reflect macroeconomic headwinds.

The broker slightly decreased BIDU's target price to $133 from $134 and rated it Outperform.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

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<Research>CICC Foresees Baidu (BIDU.US) 1Q Rev. to be Flat, Non-GAAP NP RMB5.6B

Baidu (BIDU.US) was expected to report roughly flat revenue of RMB31.1 billion for 1Q24, with core revenue adding by 2% to RMB23.5 billion, CICC said in a report.

The broker estimated Baidu's 1Q24 net profit to be RMB5.6 billion on a non-GAAP basis, with a core profit of RMB5.2 billion.

CICC maintained its revenue and non-GAAP net profit forecasts for 2024 and 2025, and kept TP on BIDU-SW (09888.HK) at $146.9 and Baidu (BIDU.US) US$151.6, with rating Outperform.

Related News: UBS Trims Baidu (BIDU.US) TP to US$170 as Macro Environment Weighs on Short-term Core Growth

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

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BIDU-SW (09888.HK) Wang Yunpeng: Apollo Go's Target is Achieving Turnaround to Profit

BIDU-SW (09888.HK) (BIDU.US) launched its autonomous driving platform Apollo Go in 2017.

Wang Yunpeng, Group Vice President and President of Intelligent Driving Business Group, wrote in an internal letter that Apollo Go is seeing a ray of hope in its 7th anniversary.

Considering that L2+ high-end intelligent assisted driving has entered a new stage of large-scale application, Wang said Apollo Go's future goal is to achieve a positive gross profit, rationalise its business model and move towards the target of 100 million kilometres of total mileage of testing and operation of automated driving, as well as to achieve a revenue and profit of RMB100 million.

Related News: BOCOMI Cuts BIDU-SW (09888.HK) TP to HK$131; ST Demand Weakness May Weigh on Rev. Growth

According to official data, Apollo Go's total self-driving test and operation mileage has exceeded 90 million kilometres, and is growing by more than 100,000 kilometres per day.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN