CITIC International raised PDD's target price to $148, maintaining an "Outperform" rating

AASTOCKS
2025.08.27 03:21

Jianyin International published a research report stating that Pinduoduo (PDD.US) exceeded profit expectations in the second quarter, mainly due to a quarterly decline in sales and marketing expenses, as well as a more than doubling of interest and investment income. However, the overall performance is still insufficient to show signs of profit stabilization since the investment upcycle, and the company's continued reinvestment in its platform ecosystem will put pressure on its short-term profitability.

The firm believes that the market has not fully reflected the potential growth valuation of Temu, the e-commerce shopping platform under Pinduoduo, and has raised the group's profit forecasts for 2025 to 2027 by 16%, 9%, and 12%, respectively, and increased the target price from $135 to $148, maintaining an "outperform" rating

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