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JPM Raises BIDU-SW (09888.HK) TP to HKD225 as AI Biz Propels Valuation Re-rating
2026-05-20 12:53:34
JPMorgan released a research report re-evaluating the business structure of BIDU-SW (09888.HK). The report noted that the market had previously viewed Baidu as a "sinking search plus a Kunlunxin IPO catalyst", with expectations that capital would rotate from Baidu to Kunlunxin after the latter's listing. However, Baidu's 1Q26 results refuted this narrative.

Core AI-powered Business recorded revenue of RMB13.6 billion, up 49% YoY, accounting for 52% of Baidu Core revenue for the first time. In contrast, Online Marketing Services shrank 22% YoY.

Based on this, JPMorgan raised its TP for BIDU-SW (09888.HK) from HKD195 to HKD225, and lifted its TP for Baidu, Inc. (BIDU.US) from USD200 to USD230, while maintaining an Overweight rating.
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