Susquehanna: Baidu’s AI Strength Encouraging, Yet Stock Likely to Stay Rangebound

Baidu, Inc. (NASDAQ:BIDU) is one of the AI Stocks on the Market’s Radar. On November 24, Susquehanna raised its price target on the stock to $110.00 from $95.00, while maintaining a Neutral rating. The firm sees Baidu’s AI traction as promising, but cautions that near-term financial headwinds can limit upside.

According to the firm, Baidu’s third-quarter results revealed continued weakness in their online marketing business. However, the weakness was partially offset by strength across its artificial intelligence product suite.

Baidu is also expected to witness further pressure on its top and bottom lines from AI search monetization. However, analysts believe margins may begin to improve and are particularly optimistic about the company’s fast-growing AI products.

“While the valuation remains undemanding, we believe the stock is likely to remain rangebound, leading us to maintain our Neutral rating.”

Baidu, Inc. (NASDAQ:BIDU) is a Chinese internet giant and AI pioneer, known for its noteworthy investments in artificial intelligence technology and its position as the dominant search engine within the country.

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Disclosure: None.