UBS Group said that the stock price of Baidu (BIDU.US) (09888.HK) has risen sharply due to news of self-driving taxis, reflecting investors' renewed interest in the company's autonomous driving business due to its previous low positions.

The bank holds a positive view of Baidu's leading position in self-driving technology in the long run, but due to the uncertainty of the company's core advertising and artificial intelligence monetization, it believes that the stock price will still fluctuate in the short term. The bank likes Baidu's long-term potential in AI and low valuation, but believes that it will take time for the concept to gradually translate into revenue.

The bank currently has a "buy" rating on Baidu, with target prices of US$165 and HK$161 for depositary shares in US stock and H shares in Hong Kong, respectively.