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<Research>HSBC Research Cuts BIDU-SW's TP to HKD74.1 w/ Rating Kept Hold; AI Search Hampers Advertising Growth
BIDU-SW's (09888.HK) (BIDU.US) accelerated AI search launch has made its advertising outlook more challenging and weighed on profit margins, HSBC Global Research wrote in its r...
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<Research>HSBC Research Cuts BIDU-SW's TP to HKD74.1 w/ Rating Kept Hold; AI Search Hampers Advertising Growth
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BIDU-SW's (09888.HK)  +0.400 (+0.467%)    Short selling $305.37M; Ratio 40.810%   (BIDU.US)      accelerated AI search launch has made its advertising outlook more challenging and weighed on profit margins, HSBC Global Research wrote in its report. Despite the steady progress of the autonomous taxi business, Apollo Go, the company still needs more time to expand revenue.

Looking ahead to 2Q25, HSBC Global Research expected BIDU-SW's core advertising revenue to decrease by 16% YoY, while cloud revenue will grow by 24% YoY. Meanwhile, the company's adjusted core business operating profit is estimated to drop by RMB3 billion YoY to RMB4billion.

Related NewsM Stanley: BIDU-SW (09888.HK), Uber (UBER.US) Deploy Autonomous Vehicles Globally, Aligning with Asset-light Strategy
The broker lowered its target price for Baidu (BIDU.US)      from USD84 to USD76 and kept the Hold rating unchanged, given that the progress of the autonomous taxi business Apollo Go may drive a revaluation. BIDU-SW (09888.HK)  +0.400 (+0.467%)    Short selling $305.37M; Ratio 40.810%   's target price was cut from HKD81.9 to HKD74.1.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-18 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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