Baidu Inc. (BIDU) dropped 0.31% on Monday to conclude the trading session at $138.99.
The Chinese search engine firm, had a good third quarter and expects China’s advertisement market to rebound soon. Analysts are optimistic about the future of Baidu and are improving their estimates.
Analysts at Keybanc expect Baidu shares to grow from the current price by as much as 40 percent. Experts lifted the target price of BIDU last week to $190 from $177 and maintained the Overweight ranking.
Baidu’s ad revenue will continue to rise as the economy recovers from the COVID-19 coronavirus, according to KeyBanc. In the current quarter, improvements are expected to start.
For Baidu, solutions with artificial intelligence (AI) elements will also become a growth point. In the midst of the ongoing digital modernization of the Chinese industry, analysts expect that Baidu would significantly benefit from its AI operation. Baidu’s use of artificial intelligence may also benefit from new infrastructure projects in China.
In August, Baidu was launching the Apollo Go robot taxi service in the Chinese city of Cangzhou with a population of around 7 million people. Baidu considers its Apollo Go app as the largest platform for autonomous driving in the world. This includes nearly 500 vehicles in China and has transported more than 100,000 passengers so far. A promising market field is the production of robo taxi, where Baidu has excellent opportunities to increase revenue.
Baidu had a good third quarter and was able to beat the Wall Street estimates. Revenue rose 1 percent to $4.3 billion in the past year. Non-GAAP net income rose 38 percent to $669 million.
Despite the slight fall in yesterday trading, Baidu Inc. (BIDU) stock is still up 2.12 percent over the past week while it has added 29.62 percent in the last 6 months. The stock’s gain is 9.96 percent since beginning of the year and current market capitalization of the Beijing, China-based company stands at more than $46 billion.