0329 GMT - Baidu's advertising business may weigh on the company's overall performance in the next few quarters, according to Citi analysts in a research note. The analysts expect a 10% year-on-year decline in core advertising revenues in 2Q and 3Q. Share prices are unlikely to see a re-rating before core advertising revenue regains positive growth, the analysts say. They expect cloud margin to remain stable at low double-digits, while investment in AI and a negative impact on search advertising revenue disruption will weigh on Baidu's core operating margin in the coming quarters. The analysts maintain a buy rating, citing an attractive valuation. Citi slightly cuts its target price for ADRs to US$138.00 from US$139.00. Its ADRs were last traded at US$85.48. (tracy.qu@wsj.com)

(END) Dow Jones Newswires

May 21, 2025 23:29 ET (03:29 GMT)

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