DBS: Baidu's fourth-quarter revenue may recover quarter-on-quarter growth.

Analysts from the DBS Group Research Department wrote in a report that Baidu's fourth quarter may have seen a recovery in revenue growth compared to the previous quarter. Profits may have been supported by a narrowing year-on-year decline in online advertising and strong growth in AI cloud infrastructure revenue. In the fourth quarter, demand for computing power and its AI chip division Kunlun Core may have also increased. These factors may have led to an improvement in gross profit and non-GAAP operating profit compared to the previous quarter. DBS Group maintains a buy rating on Baidu's stock, but has raised its H-share target price from 175 Hong Kong dollars to 206 Hong Kong dollars, and its ADR target price from 177 US dollars to 211 US dollars. Baidu's H-share last traded at 153.60 Hong Kong dollars, while its ADR closed at 150.02 US dollars.