Baidu (BIDU) PT Lowered to $245 at US Tiger Securities Into Q1

US Tiger Securities analyst Bo Pei lowered the price target on Baidu (NASDAQ: BIDU) to $245.00 (from $250.00) while maintaining a Buy rating ahead of Q1 results.

The analyst commented, "Ahead of BIDU's 1Q22 earnings, we are maintaining our BUY rating but lowering PT to $245 (was $250). We expect 1Q results to be largely in line, but we are lowering our 2Q revenue and profit estimates to reflect the surging COVID-19 cases in Shanghai, on top of a soft macro outlook. We now expect BIDU core ad revenue to decline 9%/11% y/y in 1Q/2Q vs. prior (9%)/+1%. Thus, we are also lowering our profit estimates as digital ad is BIDU's profit engine. We still see positive y/y growth in 2H, assuming the COVID-19 cases can be controlled in 2Q. We are also adjusting down our growth estimate for BIDU's AI businesses (AI Cloud, Smart Transportation, ADAD, etc.), modeling 41% y/y growth for 2022 (vs. prior 45%). Overall, despite the macro challenges in the NT, we continue to like BIDU given its leadership in China's AI and autonomous driving markets and an attractive valuation (6x '23E EBITDA)."

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