---
title: "Citigroup raised the target price for Baidu to $188 and maintained a \"Buy\" rating"
description: "Citigroup raised its target price for Baidu to $188, maintaining a \"Buy\" rating. Despite Baidu's revenue and earnings for Q4 2025 exceeding expectations, its stock price fell over 6% in the U.S. marke"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/277131799.md"
published_at: "2026-02-27T02:11:52.000Z"
---

# Citigroup raised the target price for Baidu to $188 and maintained a "Buy" rating

> Citigroup raised its target price for Baidu to $188, maintaining a "Buy" rating. Despite Baidu's revenue and earnings for Q4 2025 exceeding expectations, its stock price fell over 6% in the U.S. market. The market is concerned about the lack of a declared initial dividend, although management reiterated that dividends will be distributed by the end of the year. Revenue from AI cloud infrastructure is growing steadily, but there is insufficient disclosure regarding traditional search business. It is expected that revenue from Kunlun chips will reach 13.2 billion yuan in 2026, and revenue from AI-native marketing business will increase by 51% to 14.8 billion yuan

Citi released a report stating that although Baidu (09888.HK) met revenue expectations for the fourth quarter of 2025 and exceeded profit expectations, its stock price still fell over 6% in the U.S. market, possibly due to the lack of a declared first dividend, even though management reiterated that dividends are expected to be declared by the end of the year; revenue from AI cloud infrastructure showed steady quarter-on-quarter growth, but the market remains concerned that revenue growth may have slowed after excluding Kunlun chips; revenue disclosures driven by artificial intelligence were good, but offset by a lack of disclosure regarding traditional search business.

Looking ahead to 2026, the bank expects Kunlun chip revenue to reach RMB 13.2 billion, accounting for 52% of total AI cloud infrastructure revenue, with this business's revenue expected to grow 30% year-on-year to RMB 25.6 billion. Revenue from AI-native marketing business is forecasted to grow 51% year-on-year to RMB 14.8 billion. After valuation adjustments, the bank raised its target price for Baidu (BIDU.US) stock from $186 to $188. Based on reasonable valuation, potential premium from the spin-off of Kunlun chips, and momentum for overseas expansion of the robotaxi business, it maintains a "Buy" rating

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.