Morgan Stanley downgraded Baidu (BIDU.O) to Reduce from In Line with the market
and cut its US target price to $80 from $130, a 38.5% reduction equivalent to a
2027 forecast P/E of 10x. The firm trimmed Baidu’s core revenue forecasts for
2026–28 by 1%–9% and lowered non‑GAAP operating profit estimates by 6%–31%,
citing softer revenue and higher AI investment.
