Nomura lowers Baidu's target price to $186, reiterates "Buy" rating

AASTOCKS
2026.03.06 03:17

Nomura published a research report stating that Baidu (09888.HK) last quarter's performance reflects strong growth momentum for its chip subsidiary Kunlun Chip, which aims to complete its IPO by the end of this year. The firm noted that the market generally expects Kunlun Chip to complete its IPO in the first half of the year to meet the conditions for inclusion in the Hong Kong Stock Connect list in September. The firm anticipates that Kunlun Chip's revenue will continue to grow steadily, reaching RMB 7.6 billion this year.

Additionally, Nomura expects Baidu's advertising revenue to further decrease by 6% this year, primarily due to a 15% decline in traditional search advertising, while AI native advertising is expected to grow strongly by 42%. The firm has also lowered its forecast for the company's non-GAAP operating profit this year by 2%.

The firm maintains a "Buy" rating on Baidu (BIDU.US), but has reduced the target price from $196 to $186

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