BIDU: The Business Is Turning For the Better; Upgrade To BUY With A Price Target of $290.00
BIDU is at a turning point in its business. The company has established its new strategy – all in AI, which we believe has played into BIDU’s strength. BIDU now has all it needs to become a leader in AI applications in China. For its upcoming 3Q17 earnings report on Thursday (October 26th after the market closes followed by an 8pm EST conference call), based on our data and calculations, we believe BIDU is likely to deliver 3Q17 top line at RMB23.683B, at least in line with or slightly higher than consensus at RMB23.547B; its guidance is between RMB23.130B – RMB23.750B.