Baidu's US-listed ADRs rose 1.5% in after-hours trading following Citi's initiation of a 30-day bullish catalyst watch on the company.

Analyst Alicia Yap wrote that Baidu's "inherent strengths in chips and cloud business could serve as catalysts for a share price increase."

"While it is difficult to predict when overall market sentiment will shift, we believe there remains an opportunity for value release once the timeline for the spin-off of Baidu's chip business and market interest become clearer," the note added.

Citi rates Baidu as a "Buy." The company's stock has fallen more than 14% year-to-date.