Citi in "The Big Banks": Baidu's $5 billion repurchase plan is expected to have a positive market reaction, and a dividend may be announced when quarterly results are released

Citi published a research report stating that Baidu (BIDU.US) announced that its board of directors has approved a new $5 billion share repurchase plan, effective until December 31, 2028, and established a dividend policy aimed at further enhancing shareholder returns. The board expects to distribute dividends for the first time in 2026, but did not specify a timeline.

Citi indicated that this new $5 billion repurchase plan and the intention to initiate dividends align with the bank's expectations. The bank believes that this move aims to enhance investor confidence through a more consistent and transparent approach to shareholder returns, and the market is likely to view this positively. Citi expects Baidu to announce dividend distribution matters during the upcoming release of its fourth-quarter 2025 results or when it publishes its first-quarter results in May 2026. Following a recent market downturn, Baidu's stock price appears more attractive, especially in the context of the proposed spin-off of Kunlun Chip. Reiterating a "Buy" rating, with a target price of $186