US Tiger Securities raised its price target on Baidu (BIDU) to $160 from $150, maintaining a Buy rating.
The stock currently trades at $138.70, offering 15% upside potential. Baidu has gained 51% over the past year.
The firm sees Q1 2026 as a positive period. Legacy advertising remains weak.
AI revenue now accounts for more than half of Baidu's general business. AI cloud infrastructure is accelerating, with GPU cloud operations scaling and improving margins.
Kunlun is identified as a near-term catalyst. The strategic signal during the quarter was very strong.
Baidu's valuation should be anchored on AI infrastructure, domestic AI chips, AI applications, and asset monetization, not as an ex-growth search company. P/E ratio stands at 79.75.
In other news, Baidu launched AI agent DuMate at its Baidu Create 2026 conference. It also started international driverless ride-hailing in Dubai via Apollo Go.
Macquarie cut its target to $158 but keeps Outperform. BofA Securities reiterates Buy with $180 target.
