2023-05-01 11:36:05 ET
Baidu ( NASDAQ: BIDU ) shares edged up by almost 2% Monday as Bernstein analyst Boris Van raised his rating on the Chinese Internet search giant to outperform due to the opportunities from AI technology.
Van lifted his rating on Baidu from market perform, or neutral, and set a $160-a-share price target on the company's stock, and said that AI has the potential to make up for what he called "a poorly constructed portfolio of initiatives."
Van said GPT is likely to "give Baidu's strategy a new lease on life," and the technology "can accelerate development of its business and give the company the tailwinds to reshape its strategy."
With Baidu ( BIDU ) building up its AI services, Van said new product demonstrations "give us better clarity on product feature improvements" enough to raise his long-term revenue from search to 6% to 8% from 2% to 3%.
"A day in GPT is a year," Van said, adding that Baidu's ( BIDU ) management "seem to have learnt from [their] mistakes and [are now] able to test and learn, fail fast and move on.
Wall Street analysts and Seeking Alpha authors both have consensus buy ratings on Baidu's ( BIDU ) stock. Seeking Alpha's Quant System, which historically outperforms the stock market, also gives a buy rating to Baidu's shares .
More on AI:
Microsoft's Nadella wants to 'grab the opportunity' from AI
Alphabet touts the promise of AI at Google
Meta earnings call: Never mind the ad beat, here's the AI future (and present)
For further details see:
Baidu shares edge north; Bernstein says AI offers 'a new lease on life'