＜Research＞HSBC Global Research Cuts BIDU-SW (09888.HK) TP to $113.1; Ads Biz Recovery Takes Time

　　HSBC Global Research commented in a report that outlook for the advertising business of BIDU-SW (09888.HK) +0.450 (+0.494%) Short selling $76.37M; Ratio 28.807% (BIDU.US) remained challenging in the near term due to weak macro market sentiment and a reduction in search advertising inventory as BIDU continues to integrate AI capabilities into its search function. The broker lowered its 2024-2026 forecast for BIDU's core advertising revenue by 3-4% and its overall revenue by 1-2%. Assuming a 3% YoY decline in the group's advertising revenue in both 2Q24 and 3Q24, core advertising revenue for the full year is expected to show a slight negative growth.

　　While the broker took a constructive view on recent regulatory developments regarding autonomous driving, it did not see a significant contribution from the self-driving taxi business in the near term.

　　Related NewsMacquarie Cuts TP of BIDU-SW (09888.HK) to HK$103; Core Ads Biz Under Pressure in 2Q24

　　HSBC lowered BIDU's US share target price from US$145 to US$116, as well as its H-share target price from HK$141.4 to HK$113.1, with the Buy rating maintained. Near-term catalysts included the potential increase in shareholder return yields and improved advertising prospects.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-17 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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