BaiduIt rose nearly 3% before trading after Mizuho raised its target price because it was optimistic about the potential of its self-driving business.

Mizuho raised Baidu, Inc. 's target price to $325 from $250, citing the potential of the company's self-driving business.

"Baidu, Inc. has the conditions to occupy a dominant position in the intelligent transportation network and in-vehicle technology (operating system)," the report said. "

Analyst James Lee raised Baidu, Inc. 's valuation of the unit to $40 billion from $20 billion, as China's plans to build intelligent transportation networks in major cities were a plus.