Benchmark has reaffirmed a Buy recommendation on Baidu (NASDAQ:BIDU) stock and held its price target at $215.00 as investors await the company’s fourth-quarter results. The target equates to about 59% upside relative to the current share price of $135.30. Separately, InvestingPro analysis finds the shares undervalued, assigning a Fair Value of $173 and categorizing the stock among undervalued opportunities in the technology sector.
Baidu is scheduled to release fourth-quarter earnings on February 26. Benchmark said it does not anticipate material surprises in the quarter or any immediate, meaningful effect on the share price tied specifically to the upcoming results. Instead, the firm emphasized that the quarter is less important than the broader strategic trajectory management outlines.
Investor attention, according to Benchmark, is likely to center on updated commentary from management regarding the company’s AI strategy - chiefly how AI initiatives are beginning to convert into more tangible business outcomes and whether there is clearer visibility on monetization heading into fiscal year 2026. The clarity and timing around monetization of AI efforts are being watched closely as potential drivers of longer-term value.
Adding to scrutiny of forward guidance, InvestingPro Tips indicates seven analysts have revised their earnings estimates downward for the upcoming period. Benchmark and market participants are therefore attentive to how management frames expectations, given the increased analyst-side caution.
Core search dynamics remain a central focus because search is Baidu’s principal earnings engine. Benchmark noted that investor caution around that franchise persists. At the same time, the firm pointed to the importance of improving profitability visibility - achieved through disciplined cost management and stronger cash-flow generation - as a means to create a firmer fundamental floor under the stock.
Despite near-term concerns, Baidu shares have delivered a 53% return over the past year, a performance Benchmark links to investor optimism around the company’s AI transformation. The firm’s $215.00 price target is unchanged from its prior note on the Chinese internet search company.
Recent corporate actions may also influence investor perception. Baidu announced a $5 billion share repurchase program and said it will implement its first-ever dividend policy. The buyback is scheduled to run through December 31, 2028, and is intended to enhance shareholder value. In parallel, Baidu and Uber have agreed to collaborate on launching autonomous ride-hailing services in Dubai, deploying Baidu’s Apollo Go technology on Uber’s platform in partnership with Dubai’s Roads and Transport Authority. That service will initially operate in selected locations within the Jumeirah area.
On the analyst front, Tiger Securities raised its price target for Baidu to $150 from $135 and kept a Buy rating, pointing to expectations for further shareholder-value growth following Baidu’s confidential Hong Kong IPO filing for its AI chip subsidiary, Kunlunxin. Benchmark has also previously raised its own price target for Baidu from $158 to $215, citing a clearer set of upcoming catalysts that could unlock value from assets it believes are underappreciated.
Taken together, the reiterated Buy rating and the constellation of corporate actions - the sizable buyback, initiation of a dividend and strategic partnerships - reflect growing confidence among some analysts in Baidu’s strategic initiatives and potential for future growth. Benchmark’s stance underscores a focus on management’s narrative around AI monetization and profitability improvements rather than solely on the immediate quarter’s headline numbers.