UBS lowered its price target for Baidu's U.S. shares to $170 from $180 while maintaining a 'Buy' rating. The adjustment precedes the company's first-quarter 2026 earnings report.
UBS forecasts that AI cloud infrastructure revenue will increase by more than 40%. Surging demand and the use of self-developed Kunlun chips drive this growth projection.
Core advertising revenue is expected to decline 21% year-over-year. Analysts attribute this drop partly to the timing of the Lunar New Year.
Morgan Stanley maintained an 'Equalweight' rating on the stock. The firm expects rapid cloud expansion to help offset the deterioration in advertising performance.