Loop Capital analyst Rob Sanderson lowered the firm’s price target on Baidu to $130 from $155 but keeps a Buy rating on the shares. The firm is updating its model to reflect revenue displacement as Baidu shifts more traffic to gen-AI search ahead of monetization, and the uncertainty around revenue transition makes the stock less interesting to investors among more interesting peers that also come with attractive valuation, the analyst tells investors in a research note. Loop adds however that the opportunity for Baidu to improve its position among internet players during the era of gen-AI is attractive and could drive a meaningful revaluation of the stock over time.
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