Daiwa Securities forecasts a 2.2% year-over-year decline in Baidu's (BIDU, Financial) third-quarter revenue, estimating it will reach RMB 33.7 billion. The company faces ongoing pressure in its online marketing segment, which is expected to continue impacting its financial performance.
Compounding these challenges, Baidu's cloud computing division may experience slowed revenue growth due to recent management changes in its AI cloud sector. Daiwa anticipates growth in this segment to decelerate to 12.3% in the third quarter.
In light of these factors, Daiwa has adjusted its target price for Baidu's Hong Kong-listed shares from HK$132.00 to HK$128.00, with the latest reported price standing at HK$86.55.
