---
title: "In \"Major Banks,\" Bank of China: Baidu's fourth-quarter profit exceeds expectations, target price $172, recommends buying"
description: "Bank of China International released a report stating that Baidu's profit in the fourth quarter exceeded market expectations, with adjusted net profit up 13%. Although total revenue decreased by 4% ye"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/277163084.md"
published_at: "2026-02-27T08:13:42.000Z"
---

# In "Major Banks," Bank of China: Baidu's fourth-quarter profit exceeds expectations, target price $172, recommends buying

> Bank of China International released a report stating that Baidu's profit in the fourth quarter exceeded market expectations, with adjusted net profit up 13%. Although total revenue decreased by 4% year-on-year, it grew by 5% quarter-on-quarter. Revenue from core A-enabled business accounted for 43%. The bank is optimistic about Baidu's prospects in the AI field, maintaining a "Buy" rating on its U.S. stock with a target price of $172

The research report from Bank of China International indicates that Baidu (09988.HK) saw a 4% year-on-year decline in total revenue for the fourth quarter, but a 5% quarter-on-quarter increase, which is in line with market expectations. The revenue from its core A-enabled business was RMB 11.3 billion, accounting for 43% of Baidu's core business revenue. Although expenses exceeded expectations, adjusted operating profit and adjusted net profit were both 13% higher than market expectations, mainly due to better-than-expected gross profit contributions.

The firm expects Baidu to benefit from the global AI wave due to its firm execution of a strategy based on a full-stack end-to-end AI ecosystem capability. The firm believes that high-quality and sustainable AI-enabled revenue growth, along with enhanced organizational operational efficiency, will improve the company's financial health.

Considering the company's ongoing execution of a series of shareholder return plans, the firm maintains a "Buy" rating on Baidu (BIDU.US) with a latest target price of $172

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