Baidu Set to Accelerate AI Innovation

Baidu’s Focus on Core Ads Business Drives Market Share Growth

In a note released on Thursday, Macquarie Equity Research initiated coverage of Baidu with an Outperform rating and a target price of US$150 per share. Analysts highlighted Baidu’s greater focus on its core ads business as a key driver for steady market share growth. Despite being a highly cyclical sector, advertising channels are seeing divergent performance as merchants strive for better return on investment with superior conversion. Baidu’s emphasis on conversion-oriented search ad demand is expected to remain stable as advertisers aim to maximize advertising efficiency.