Morgan Stanley Downgrades Baidu to Underweight, Cuts PT 38.5% to $80

English summary

Morgan Stanley cut Baidu's (BIDU.O) 2026-2028 core revenue forecasts by 1%-9% and non-GAAP operating profit forecasts by 6%-31%, citing weak revenue and rising AI investment. It slashed the US-listed target price from $130 to $80 (a 38.5% cut) and downgraded the stock to Underweight from Equal-weight.