UPDATE: Loop Capital Upgrades Baidu (BIDU) to Buy

Loop Capital analyst Rob Sanderson upgraded Baidu (NASDAQ: BIDU) from Hold to Buy, PT $290.00 (form $210.00).

The analyst comments "We think the automotive industry is on the cusp of drastic transformation. While much of the focus is on electrification, we think 5G connectivity and autonomy will redefine user experience and bring new use cases for passenger vehicles and the transportation industry overall. With regulation a primary adoption barrier in the US and around the world, we think China is positioned to lead in autonomous vehicle technology. We are bullish on Baidu’s Apollo business, leading the pace of AV commercialization in China by a wide margin across many metrics. Apollo is now producing revenue (mostly from smart-transportation projects) but is still basically a pre-revenue opportunity and valuation is speculative. After missing the quick revaluation in late-2020, we view the cooling of growth multiples in general, last week’s unusual trading dynamics and impact to Baidu shares specifically providing an excellent opportunity. We are upgrading the stock to Buy and raising our price target to $290 from $210 previous."

For an analyst ratings summary and ratings history on Baidu click here. For more ratings news on Baidu click here.

Shares of Baidu closed at $205.20 yesterday.

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