＜Research＞Jefferies Lowers BIDU-SW (09888.HK) TP to $168, 2Q Core Rev. Predicted Flat YoY

　　From a report released by Jefferies, the 2Q24 results of BIDU-SW (09888.HK) -2.650 (-2.821%) Short selling $149.35M; Ratio 27.791% , after factoring in uncertainties from macro headwind and the company's emphasis on user experience with AI, was estimated to have its core revenue flattish YoY at approx. RMB26.4 billion, less than the previous estimate of 2% YoY growth. By segment, Jefferies expected that BIDU-SW's online marketing revenue would decline by about 3% YoY, and that it would focus on user experience by rebuilding the AI ecosystem. For AI Cloud, revenue was estimated to rise by 15% YoY, mainly driven by revenue from generative AI and foundation models and new opportunities brought by customers' increased spending on GPU cloud.

　　The broker estimated BIDU-SW's non-GAAP operating profit for 2Q to be RMB6.5 billion, slightly lower than the previous estimate of RMB6.6 billion, with non-GAAP operating margin remaining stable at 24.6%.

　　Related NewsUBS: Baidu (BIDU.US) Shr Price May Keep Fluctuating in Short Term

　　In addition, since BIDU-SW had commenced its Robotaxi operations in 4 cities, Jefferies believed that the cost per vehicle would decline and the fundamentals would improve along with more vehicles being deployed for operations.

　　Jefferies rated BIDU-SW as Buy and lowered its price target from $173 to $168.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-16 12:25.)

　　AAStocks Financial News