Bank of Communications International: Raising Baidu's target price to $175, profit turning point expected to occur in the second half of the year According to a report by Golden Finance, on June 26th, Bank of Communications International released a report stating that Baidu's profit turning point is expected to occur in the second half of this year, waiting for short-term catalysts to reflect. The target price for Baidu's US stock has been raised to $175, with a rating of "buy". The bank believes that due to factors such as maintaining high growth in AI cloud infrastructure revenue and optimizing revenue composition, accelerating commercialization of AI application products (such as Taozi/Miaoda/Fumo, etc.), and stabilizing traditional advertising revenue trends, Baidu's quarterly profit turning point is likely to occur in the second half of 2026. The bank expects the company's core profit to slightly increase by 0.2% year-on-year in the 2026 fiscal year, and the growth rate to accelerate to 13% by 2027. Meanwhile, the bank expects compound annual growth rates of 44%, 5%, and 9% for AI cloud infrastructure, applications, and native marketing services between 2026-28; The proportion of AI new business in Baidu's general business revenue will increase from 53% in 2026 to 64% in 2028.