Citibank: Maintaining Baidu Group-SW (09888) “Buy” Rating Valuation Is Currently Attractive

The Zhitong Finance App learned that Citi released a research report saying that maintaining Baidu Group-SW (09888) “buy” rating, the target price for US stocks (BIDU.US) is 166 US dollars, and the company's current valuation is attractive. At the Citigroup Global TMT conference, Baidu CFO He Haijian said that the main benefits include Baidu's GPU cloud business growth and increasing profits; Baidu focuses on capital efficiency strategies. Its investment cycle is shorter than in the previous CPU era, and its capital expenditure is lower than that of peers.

According to the report, Baidu believes that the MaaS hosting market has huge challenges, especially when the Wenxin model can be further improved; Baidu believes Robotaxi is a long-term investment; the search business wants to reduce the trend; and senior management is committed to rewarding shareholders and strict capital allocation. Furthermore, the bank expects that the southbound capital flow will take some time to fully unfold, rather than form an immediate flow.