China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

[Baidu (BIDU US) Target Price Change]: Better Recovery with Leading Position in AIGC

[Baidu (BIDU US, BUY, TP US$178) Target Price Change]: Maintain BUY for Faster Recovery and AIGC

[Baidu, Inc. (BIDU US, BUY, TP US$162) TP Change]: Cut TP Due to Weaker Outlook in Ads and Cloud

Baidu (Bidu.US): AIGC to Bring More Potential and Empower Search Biz

Baidu (BIDU US) – Core Business Recovery on Track with More to Expect on New Initiatives

Baidu (BIDU US) – Strong AI capability to empower business growth

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>Baidu delivered 4Q22 results with top line beating cons. by 3.2% and non-GAAP net income beating cons. by 13.4%. </li>
<li>We expect both its ads and AI cloud businesses to recover with accelerated pace, which could partially offset the increase of R&amp;D investment in AI related technologies.</li>
<li>Reiterate BUY rating and slightly raise TP to US$ 172 to reflect the on-track recovery and AIGC synergy. Our TP implies 17.9x PE in 2023.</li>
</ul>


Baidu delivered 4Q22 results with top line beating cons. by 3.2% and non-GAAP net income beating cons. by 13.4%. 
We expect both its ads and AI cloud businesses to recover with accelerated pace, which could partially offset the increase of R&amp;D investment in AI related technologies.
Reiterate BUY rating and slightly raise TP to US$ 172 to reflect the on-track recovery and AIGC synergy. Our TP implies 17.9x PE in 2023.


[Baidu (BIDU US) Target Price Change]: Margin Improvement Offsets R&D Increase