Joyce Ju, an analyst from Bank of America Securities, reiterated the Hold rating on PDD Holdings (PDD – Research Report). The associated price target is $140.00.
Joyce Ju has given her Hold rating due to a combination of factors, primarily focusing on PDD Holdings’ recent financial performance and strategic outlook. The company’s revenue growth in the fourth quarter of 2024 was lower than expected, with a 24% year-over-year increase that fell short of consensus estimates. This was attributed to slowing marketing revenues and a decline in marketplace commissions in China, despite efforts to support high-quality merchants.
Additionally, while PDD Holdings experienced a 17% year-over-year growth in non-GAAP net profit, surpassing some expectations, the company faces uncertainties in near-term earnings and regulatory challenges. Management’s commitment to investing in consumer experiences and platform development is expected to cause fluctuations in revenue growth and profitability in the short term. Consequently, Joyce Ju maintains a Neutral stance, recognizing the potential for domestic market share gains and international expansion, but also acknowledging the high level of uncertainty surrounding the company’s future performance.
In another report released today, DBS also maintained a Hold rating on the stock with a $102.00 price target.
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