Morgan Stanley: Upgrades rating on BIDU-SW (09988) to "outperform the market" with target price raised significantly to 171 Hong Kong dollars.

Macquarie released a research report stating that BIDU-SW (09888) is shifting towards more diversified sources of revenue, with positive option value from artificial intelligence cloud and autonomous driving taxis. The firm has upgraded its investment rating on Baidu from "neutral" to "outperform the market". The target price has been significantly raised from HK$96 to HK$171, with the chip design department potentially contributing one third of Baidu's valuation (calculated based on a 20x market-sales ratio).