Chinese capital boosts Baidu's prospects after key autonomous driving breakthrough in Dubai

China International Capital Corporation (CICC), one of the leading market analysis firms, has increased its confidence in Baidu following a significant milestone on its autonomous vehicle platform. Earlier this year, the company announced that its Apollo Go division received official approval to conduct fully autonomous testing in Dubai, making it the only platform authorized for such operations in the region. This recognition reflects Baidu’s rapid progress in autonomous driving technology.

Dubai milestone marks a turning point for Apollo Go

Obtaining permission for fully autonomous testing in Dubai is a crucial achievement for Apollo Go. The platform is currently the only authorized entity to conduct such tests in the city, highlighting Baidu’s technological advancements in this sector. The company plans to expand its fleet of fully autonomous vehicles in Dubai to over 1,000 units, strengthening its presence in Middle Eastern markets and positioning itself as a key player in the global autonomous vehicle race.

CICC raises targets and maintains bullish outlook on Baidu

CICC’s equity analysts have revised their confidence in the company upward, largely maintaining their revenue and non-GAAP net profit forecasts for 2025 and 2026, while introducing new projections for 2027: estimated revenue of 135 billion yuan and non-GAAP net profit of 22.1 billion yuan. This projection structure reflects the Chinese capital team’s confidence in Baidu’s profitability trajectory.

The firm maintains a “sector outperform” rating for Baidu and has increased its target price for U.S. stocks by 8.5%, to $205. Similarly, the target for Hong Kong stocks was raised by 7%, now reaching HKD 196. These increases reflect an optimistic view of the company’s growth potential, driven by advances in autonomous driving and improved financial outlooks.