Guangfa Securities: Maintains a buy rating on Baidu Group with a target price of HKD 173.

Guangfa Securities has released a research report on Baidu Group-SW, maintaining a "buy" rating with a target price of 173 Hong Kong dollars. The company's AI-related revenue has increased to 43%, with the pain of transformation behind them. AI cloud and chip businesses are expected to continue high growth by 2026, while traditional advertising drag is weakening. Adjusted net profit for 2026-27 is estimated to be 181/186 billion yuan, with SOTP valuation supporting the target price.