Baidu Stock Price: $300 Target By Morgan Stanley

By Amit Chowdhry ● April 3, 2021
  • The shares of Baidu Inc (NASDAQ: BIDU) have received a $300 price target by Morgan Stanley. These are the details.

The shares of Baidu Inc (NASDAQ: BIDU) have received a $300 price target by Morgan Stanley. And Morgan Stanley analyst Gary Yu reiterated an “Overweight” rating on the shares following an investor call with the CFO of the company.

During the call, it was revealed that Baidu’s investments in artificial intelligence have been successfully driving long-term growth across several divisions at the company, including the Mobile Ecosystem, Intelligent Driving and OGI, and the AI Cloud.

Baidu also revealed that the initial investments will still impact margins, but the company is expecting 40% – 60% margins in the mature cloud projects. And Baidu is expecting spending growth to normalize as network infrastructure expands.

The company’s non-ad revenue is expected to hit about 18% of the company’s core and grow 52% year-over-year in Q4 2020 with an expected TAM of $636 billion.

Morgan Stanley is not the only brokerage to recently issue a research report about Baidu. Loop Capital recently upgraded Baidu shares from a “Hold” to a “Buy” rating.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.