Baidu downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Gary Yu downgraded Baidu to Equal Weight from Overweight with a price target of $125, down from $140. Baidu’s weak advertising outlook is “set to linger,” the analyst tells investors in a research note. The firm says that while the company’s cloud growth will accelerate, its artificial intelligence monetization is still at an early stage. The stock stock has rallied 17% but there is limited near-term catalysts, contends Morgan Stanley.