Loop Capital Markets willBaiduThe rating was upgraded to buy from hold due to its self-driving vehicle business, as well as a relatively satisfactory valuation following recent declines.
Last week, Baidu's U.S. -listed stock fell 19%, which analyst Rob Sanderson wrote was a "great opportunity to accumulate the stock."
Loop is bullish on Baidu's Apollo business, saying it is "well ahead of the commercialization of self-driving vehicles in China by many indicators."
The overall economic recovery will also support the company's search advertising business, the company wrote.
Price target raised to $290 from $210.
Separately, ARK Investment Management bought a total of about 480,000 shares of Baidu through three different ETFs.
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