Alicia Yap, an analyst from Citi, maintained the Buy rating on Baidu. The associated price target remains the same with $143.00.
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Alicia Yap’s rating is based on several promising developments in Baidu’s robotaxi business. The company has made significant strides in expanding its autonomous driving operations, particularly in the Middle East. Baidu’s Apollo Go has recently obtained 50 additional trial licenses in Dubai, which will allow it to double its fleet size in the UAE. This expansion is part of Baidu’s broader strategy to deploy over 1,000 robotaxis in Dubai by the end of 2027 or early 2028, marking the Middle East as a crucial region for future commercialization.
Apart from the Middle East, Baidu is also exploring opportunities in Australia and Southeast Asia, indicating a strong international growth trajectory. The company has achieved breakeven in several Chinese cities, which provides a solid foundation for its overseas commercialization plans. Although the revenue contribution from robotaxis is currently small, these developments could unlock further valuation potential for Baidu. These factors contribute to Alicia Yap’s decision to maintain a Buy rating with a target price of $143.
In another report released on September 25, DBS also upgraded the stock to a Buy with a $177.00 price target.