Peeling Back The Layers: Exploring Baidu Through Analyst Insights
9 analysts have expressed a variety of opinions on Baidu (NASDAQ:BIDU) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 6 | 2 | 1 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 2 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 4 | 0 | 1 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $142.0, with a high estimate of $180.00 and a low estimate of $125.00. This current average represents a 9.04% decrease from the previous average price target of $156.11.
Investigating Analyst Ratings: An Elaborate Study
The analysis of recent analyst actions sheds light on the perception of Baidu by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Jiong Shao | Barclays | Lowers | Overweight | $125.00 | $133.00 |
| Eddie Leung | B of A Securities | Lowers | Buy | $128.00 | $140.00 |
| Rob Sanderson | Loop Capital | Lowers | Buy | $130.00 | $155.00 |
| Shyam Patil | Susquehanna | Lowers | Positive | $135.00 | $150.00 |
| Fawne Jiang | Benchmark | Maintains | Buy | $180.00 | $180.00 |
| Gary Yu | Morgan Stanley | Lowers | Equal-Weight | $125.00 | $140.00 |
| James Lee | Mizuho | Lowers | Buy | $130.00 | $140.00 |
| Fawne Jiang | Benchmark | Lowers | Buy | $180.00 | $210.00 |
| Charlene Liu | HSBC | Lowers | Buy | $145.00 | $157.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Baidu. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Baidu compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Baidu's stock. This comparison reveals trends in analysts' expectations over time.
Capture valuable insights into Baidu's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
Stay up to date on Baidu analyst ratings.
Get to Know Baidu Better
Baidu is the largest internet search engine in China with 84% share of the search engine market in September 2021 per web analytics firm, Statcounter. The firm generated 72% of core revenue from online marketing services from its search engine in 2022. Outside its search engine, Baidu is a technology-driven company and its other major growth initiatives are artificial intelligence cloud, video streaming services, voice recognition technology, and autonomous driving.
Baidu's Financial Performance
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Positive Revenue Trend: Examining Baidu's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 1.18% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Communication Services sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 17.29%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Baidu's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 2.22%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Baidu's ROA excels beyond industry benchmarks, reaching 1.33%. This signifies efficient management of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 0.36, Baidu adopts a prudent financial strategy, indicating a balanced approach to debt management.
The Significance of Analyst Ratings Explained
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.