- Citi maintains "Buy" rating on Baidu with a $186 price target.
- Baidu's AI cloud revenue is forecast to grow 45% YoY in the first quarter.
- The potential IPO of chip subsidiary Kunlunxin is seen as a key upside catalyst.
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Citi Sees 45% Baidu Cloud Growth on Kunlunxin IPO Buzz
Citi reiterated its Buy rating on Baidu with a $186 price target, citing the potential IPO of its Kunlunxin chip unit and forecasting 45% year-over-year growth in the company's AI cloud revenue for the first quarter.
"The broker believes this is a common strategy among Chinese semiconductor companies and expects management to provide more details on the listing timetable and procedures during the 1Q earnings conference call to be held on May 18," the research report said.
The potential dual listing of Kunlunxin in Hong Kong and on Shanghai's STAR Market could unlock significant value for Baidu shareholders and provide a new funding channel for the rapidly growing AI chip business. Investors are looking forward to the company’s upcoming Baidu Create 2026 event on May 13-14 and the subsequent first-quarter earnings call on May 18 for more concrete details on the IPO timeline and the company's latest AI developments.
This article is for informational purposes only and does not constitute investment advice.
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