7 Analysts Assess Baidu: What You Need To Know

Baidu BIDU underwent analysis by 7 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $115.14, with a high estimate of $139.00 and a low estimate of $100.00. Highlighting a 14.92% decrease, the current average has fallen from the previous average price target of $135.33.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Baidu among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Baidu. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Baidu compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Baidu's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Baidu's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Baidu analyst ratings.

Get to Know Baidu Better

Baidu is the largest internet search engine in China with over 50% share of the search engine market in 2024 per web analytics firm, Statcounter. The firm generated 72% of core revenue from online marketing services from its search engine in 2023. Outside its search engine, Baidu is a technology-driven company and its other major growth initiatives are artificial intelligence cloud, video streaming services, voice recognition technology, and autonomous driving.

Baidu's Financial Performance

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Decline in Revenue: Over the 3 months period, Baidu faced challenges, resulting in a decline of approximately -0.37% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: Baidu's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 16.17% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.19%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Baidu's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.32%, the company showcases efficient use of assets and strong financial health.

Debt Management: Baidu's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.33.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.