Macquarie: Raises the target price of Baidu Group-SW to HKD 181, expects Kunlun Chip IPO to release significant value

Zhitong
2026.07.06 06:31

Macquarie released a research report stating that it recently held a non-deal roadshow for Baidu Group-SW in the United States and Canada. During the event, investors mainly focused on the company's full-stack AI layout. Baidu's management reiterated that by providing integrated solutions covering chips, cloud infrastructure, large language models, and applications, it is increasingly demonstrating differentiation among domestic internet peers. Macquarie maintained its profit forecast for Baidu for the fiscal year 2026, raising the target price from HKD 169 to HKD 181 based on the upward revision of Kunlun Chip revenue forecasts and the average valuation levels of peers. The target price for Baidu's U.S. stock was raised from USD 166 to USD 177, with a rating maintained at "Outperform." Macquarie also indicated that Baidu's Kunlun Chip (KLX) is expected to see revenue growth of over 100% year-on-year in the fiscal year 2026, reaching approximately RMB 8.5 billion, with profit margins steadily expanding. It assigned a valuation of about USD 48 billion to it, with Baidu holding a 59% stake equivalent to an equity value of USD 82.5 per share, and it is expected to release significant value after going public. Currently, AI-related businesses have contributed over half of the group's revenue, and management is confident in the long-term value of AI, expecting that the rapidly growing infrastructure business will gradually offset the pressure from traditional search operations

According to the Zhitong Finance APP, Macquarie has released a research report stating that it recently held a non-deal roadshow for Baidu Group-SW (09888) in the United States and Canada. During the event, investors mainly focused on the company's full-stack AI layout. Baidu's management reiterated that by providing integrated solutions covering chips, cloud infrastructure, large language models, and applications, it is increasingly demonstrating differentiation among domestic internet peers. Macquarie maintains its profit forecast for Baidu for the fiscal year 2026, and based on the upward revision of revenue forecasts for Kunlun Chip and the average valuation levels of peers, it has raised the target price from HKD 169 to HKD 181, and the target price for Baidu (BIDU.US) in the US stock market from USD 166 to USD 177, maintaining a rating of "outperform."

Macquarie also pointed out that the revenue forecast for Kunlun Chip (KLX) under Baidu for the fiscal year 2026 is expected to grow more than double year-on-year to approximately RMB 8.5 billion, with profit margins steadily expanding, giving it an estimated valuation of about USD 48 billion. Baidu's 59% stake corresponds to an equity value of USD 82.5 per share, and it is expected to release significant value after going public. Currently, AI-related businesses have contributed over half of the group's revenue, and management is confident in the long-term value of AI, expecting that the rapidly growing infrastructure business will gradually offset the pressure from traditional search business

Source: Zhitong The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.