＜Research＞M Stanley Trims Baidu (BIDU.US) TP to US$115 as Ads Growth Continues to be Weak

　　Morgan Stanley issued a research report expecting Baidu, Inc. (BIDU.US) 's 2FQ25 core revenue to be roughly flat YoY, but advertising growth continued to be weak, with a 2% decline expected due to a weak macro-economy and AI transition.

　　In addition, Morgan Stanley forecasted the Group's cloud business growth may remain at 15%, while core non-GAAP operating margin will rise by 2%, with margins broadly stable.

　　As Morgan Stanley maintained a cautious stance on Baidu's core advertising recovery and believed that there will not be a turning point in the near future, the broker lowered its 2024-2025 core revenue/ non-GAAP operating margin forecasts for the Group by 1-2%, and trimmed its target price from US$125 to US$115, with rating kept at Equalweight.

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