Citi: Expects Baidu to benefit from the global AI wave, maintains "buy" rating.

Bank of China International released a research report stating that Baidu's fourth-quarter total revenue was in line with market expectations, with core AI-enabled business revenue reaching 11.3 billion yuan, accounting for 43% of Baidu's core business revenue. Adjusted operating profit and adjusted net profit were both 13% higher than market expectations, mainly due to better-than-expected gross profit contribution. The bank expects Baidu to benefit from the global AI trend, as it firmly executes its strategy based on end-to-end AI ecosystem capabilities. The bank believes that high-quality and sustainable AI-enabled revenue growth, along with enhanced organizational operational efficiency, will strengthen the company's financial indicators. Considering the company's ongoing implementation of a series of shareholder return plans, the bank maintains a "buy" rating on Baidu's US stocks, with a latest target price of $172.