Baidu: Possibly China's Highest Valued Company By 2030

Jul. 24, 2022 1:42 AM ETBaidu, Inc. (BIDU) StockBIDU4 Comments
Cavenagh Research
9.47K Followers

Summary

  • Baidu is a leading tech/internet company in China with a diversified portfolio of competitive businesses: search engine, AI cloud, smart devices, and intelligent driving.
  • Baidu is currently ranked as the 34th highest valued company in China. I believe Baidu will have grown to claim the #1 spot by 2030.
  • Baidu stock is down approximately 55.5% from all-time-highs and I argue now is the time to buy.
  • I value Baidu based on a residual earnings framework and see more than 60% upside. My target price is $237.80/share.

Baidu Inc. Headquarters

zorazhuang

Thesis In A Nutshell

Baidu stock (BIDU) is down approximately 55.5% from All-Time-Highs. Is now the time to buy? Reflecting on decade-low valuations, more policy support from the CCP and the exposure to a potential reboot of the Chinese economy, I strongly

This article was written by

9.47K Followers
Experience as an investment analyst for a major BB-Bank, as well as private equity consultant for MBB. Currently working towards the CFA charter, having completed I&II. Passion for risk-assets (Growth, Contrarian, Emerging Market). Ex-colleague and close friend of Investor Express.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BIDU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

not financial advise

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