Baidu, Inc. (NASDAQ:BIDU) is gaining attention on Wall Street as analyst Roman Lukianchikov raised the price target to $160.00, maintaining a “Buy” rating. Despite margin pressure, Baidu’s transformation efforts are showing positive signs. Lukianchikov believes scaling less profitable initiatives could drive profitability recovery in the medium term.

Baidu delivered quarterly results that exceeded expectations, with ongoing transformation efforts yielding positive results. Although margin pressure persists due to higher capital expenditures, the firm remains optimistic about Baidu’s potential. Lukianchikov believes successful scaling of less profitable initiatives could lead to profitability recovery in the medium term.

Despite margin pressure from elevated spending, Baidu’s less profitable ventures may drive profitability recovery over the medium term. Freedom Capital Markets raised the price target on BIDU to $160.00, issuing a “Buy” recommendation. Analysts are confident that Baidu’s transformation efforts will pay off despite competition in its core business.

Baidu, Inc. (NASDAQ:BIDU) is a Chinese internet giant and AI pioneer with significant investments in artificial intelligence technology. While BIDU offers potential as an investment, some AI stocks may have greater upside potential and less downside risk. Investors seeking undervalued AI stocks can explore alternative options for potential growth and benefits.

For more insights on AI stocks, check out “11 AI Stocks on the Market’s Radar” and “10 AI Stocks Analysts Are Watching Closely.” Stay informed about market trends and investment opportunities in the AI sector for potential growth and success. Note: No disclosures were provided in this news article.

Read more at Yahoo Finance: Freedom Capital Markets Lifts Baidu (BIDU) Price Target, Maintains Buy Rating