China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

[Baidu, Inc. (BIDU US, BUY, TP US$162) TP Change]: Cut TP Due to Weaker Outlook in Ads and Cloud

[Baidu (BIDU US, BUY, TP US$162) Earnings Review]: Online Ads Growth Will Remain Robust

[Baidu, Inc. (BIDU US, BUY, TP US$157) TP Change]: C4Q/2024 Ads Upswing Bridge Gap to the Future

[Baidu (BIDU US) Target Price Change]: Better Recovery with Leading Position in AIGC

[Baidu (BIDU US) Target Price Change]: Margin Improvement Offsets R&D Increase

Baidu (BIDU US) – Strong AI capability to empower business growth

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>Baidu delivered 1Q23 results with top line beat our estimate by 3.5%, and non-GAAP net income beat our estimate by 14.7%. </li>
<li>We expect both its ads and AI cloud revenues to recover with accelerated pace, which could offset the increase of R&amp;D spending in AIGC. </li>
<li>Reiterate BUY rating and slightly raise TP to US$ 178 to reflect the faster recovery. Our TP implies 17.9x PE in 2023.</li>
</ul>


Baidu delivered 1Q23 results with top line beat our estimate by 3.5%, and non-GAAP net income beat our estimate by 14.7%. 
We expect both its ads and AI cloud revenues to recover with accelerated pace, which could offset the increase of R&amp;D spending in AIGC. 
Reiterate BUY rating and slightly raise TP to US$ 178 to reflect the faster recovery. Our TP implies 17.9x PE in 2023.


[Baidu (BIDU US, BUY, TP US$178) Target Price Change]: Maintain BUY for Faster Recovery and AIGC