Dahua Jixian released a report stating that it has raised its target price for Baidu (09888.HK) by 9.9%, from HK$151 to HK$166, while also raising its target price for the company’s U.S.-listed shares and maintaining a “Buy” rating.The firm is optimistic about Baidu’s proposed spin-off of Kunlun Chip for a listing on the Hong Kong Main Board, believing this will help unlock Baidu’s financial value and strengthen its AI ecosystem. Baidu announced the spin-off of Kunlun Chip earlier this month; following the listing, Kunlun Chip will remain a consolidated subsidiary of Baidu, with Baidu retaining a 59% stake.Given these factors, the bank maintains its revenue forecasts for Baidu for the fourth quarter of 2025 and 2026, while lowering its projections for the company’s adjusted net profit margin by 3% and 1%, respectively, to RMB 4.1 billion and RMB 19.1 billion.