Baidu.com (BIDU.O) Key Takeaways From US Investor Meetings

研报英文原文证据摘录

Baidu.com (BIDU.O) Key Takeaways From US Investor Meetings

Viewpoint |

22 Jun 2026 16:51:56 ET │ 16 pages

Baidu.com (BIDU.O)

Key Takeaways From US Investor Meetings

CITI'S TAKE

We recently hosted investor meetings for Baidu management in the US. Key

discussions included: 1) holistic AI full-stack approach with robust demand

and proven growth prospects in chip and cloud levels and upside Buy

opportunities in models, robotaxi and application levels; 2) supply Catalyst Watch: Upside

constraints vs strong demand visibility; 3) industry landscape and

Price (18 Jun 26 16:00) US$111.76competitive environment for chips, cloud and models; 4) investment

priorities and reallocation of resources; and 5) value unlocking catalysts and Target price US$188.00

shareholder return. Despite recent soft sentiment for overall China and Expected share price return 68.2%

Internet sector, investors do recognize Baidu's underlying technology

Expected dividend yield 0.0%strength and management's commitment in capitalizing high-quality asset

through the upcoming spin-off of its chip division and first-ever dividend Expected total return 68.2%

policy. We believe the re-prioritizing in next-level model training and Market Cap US$38,031M

improving future monetization opportunity for various applications,

stabilizing legacy search business as well as expanding Robotaxi use cases

in overseas market could support future monetization growth upside.

Maintain Buy and US$188 TP.

Price Performance

(RIC: BIDU.O, BB: BIDU US)30-day positive catalyst watch - On the back of recent share price weakness for

the entire China internet sector, Baidu is currently trading at 13.8x and 12.0x our

2026E and 2027E group EPS or 5.3x and 4.6x on ex-cash level for 2026 and 2027

group EPS which we view as attractive.