10:10 AM EDT, 05/16/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our 12-month target at USD120, using a P/E of 9.7x our '25 EPS view, near China-based peers. We increase our '24 EPS view to CNY83.11 from CNY77.61 and '25's to CNY88.00 from CNY83.85. BIDU posted Q4 earnings per ADS of CNY19.91 vs. CNY16.10, beating the CNY15.81 consensus. Sales rose 1%, slightly beating expectations, led by higher online marketing (+3%) and non-online marketing (+6%), which was partly offset by a 5% decline from iQIYI. We acknowledge that BIDU is seeing some benefits from its AI model ERNIE through greater ad platform enhancements (better targeting/bidding) and cloud services. Although AI potential in the cloud/mobility/ad areas remain high, monetization benefits remain small while developers have yet to build notable apps for Ernie. We also note intense competitive pressures, sluggish ad growth, and higher needed investments toward AI. We are impressed by cost cutting initiatives (opex down Y/Y), autonomous driving momentum (+25%), and respectable MAU mobile growth of 3%.