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

[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 (Bidu.US): AIGC to Bring More Potential and Empower Search Biz

[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>We estimate that Baidu’s 1Q23/2023 bottom line would beat cons. by 13.2%/6.5%, mostly driven by better-than-expected recovery of ads business and cost-saving measures. </li>
<li>We remain optimistic about Baidu’s AIGC leading position, because Baidu still gains the edge for its first-mover advantage and continuous investment. </li>
<li>Maintain BUY rating and raise TP to US$175, implying 17.9X PE in 2023</li>
</ul>


We estimate that Baidu’s 1Q23/2023 bottom line would beat cons. by 13.2%/6.5%, mostly driven by better-than-expected recovery of ads business and cost-saving measures. 
We remain optimistic about Baidu’s AIGC leading position, because Baidu still gains the edge for its first-mover advantage and continuous investment. 
Maintain BUY rating and raise TP to US$175, implying 17.9X PE in 2023


[바이두(BIDU US) 목표주가 변동]: AIGC 선도적 지위로 회복세 지속