Professional
Added to YB: 2024-05-22
Pitch date: 2024-05-17
BIDU [bullish]
Baidu, Inc.
+14.16%
current return
Author Info
No bio for this author
Company Info
Baidu, Inc. provides online marketing and non-marketing value added services through an internet platform in the People’s Republic of China.
Market Cap
$291.0B
Pitch Price
$109.50
Price Target
174.00 (+39%)
Dividend
N/A
EV/EBITDA
8.25
P/E
36.61
EV/Sales
2.20
Sector
Interactive Media and Services
Category
growth
Baidu, Inc.: Weakness in Advertising Offset by Continued Double-Digit Growth in Cloud Business
BIDU: Q1 rev in-line w/ CNY31.1B; ad +3% YoY offset by cloud AI +12%. Gen AI rev CNY1B (CNY322M fr cloud). Expect ad headwinds to persist in Q2/Q3 w/ 1% YoY growth each Q, 2% FY24. Baidu has 1st-mover adv in gen AI, but risks include increased ad competition, uncertain AI monetization & recent leadership turnover. $174 FVE based on 6% 5Y ad CAGR & 10% total CAGR w/ AI cloud & auto driving upside but high uncertainty.
Read full article (11 min)