JPMorgan has upgraded its rating on Baidu Group-SW (09888) from "Neutral" to "Overweight," advising investors to buy now to capitalize on valuation re-rating opportunities. The bank also raised its 2026 revenue and adjusted EPS forecasts by 11% and 46%, respectively, following the company's better-than-expected Q3 results. Baidu's target price was lifted by 76% to HK$185, with its cloud and AI businesses poised to become key growth drivers.
According to JPMorgan's estimates, Baidu's cloud revenue growth is expected to accelerate to around 61% in 2026, driven by a sixfold surge in Kunlun chip sales. The cloud business alone could be valued at approximately $34 billion.
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