In a report released today, Alicia Yap from Citi maintained a Hold rating on PDD Holdings (PDD – Research Report), with a price target of $150.00.
Alicia Yap’s rating is based on several factors that influence PDD Holdings’ current market position and future prospects. Despite the company’s efforts to focus on high-quality growth and investments in platform ecosystem and merchant support, there are concerns about profit pressures that have not yet normalized. The management’s commitment to supporting rural logistics and agriculture, while commendable, indicates ongoing financial strain.
Alicia Yap also notes the uncertainty surrounding Temu’s ability to transition to a local seller model and a semi-managed Chinese supply chain, which could impact its competitive edge. Additionally, the competitive landscape remains challenging, with rivals exploring innovative business models and technology to enhance user experience. Regulatory headwinds further complicate the outlook, prompting a cautious approach. Consequently, the Hold rating reflects these uncertainties, despite a target price adjustment to $150 as future estimates are rolled forward.
According to TipRanks, Yap is a 4-star analyst with an average return of 4.6% and a 46.28% success rate. Yap covers the Consumer Cyclical sector, focusing on stocks such as JD, Alibaba, and PDD Holdings.
In another report released today, US Tiger Securities also downgraded the stock to a Hold with a $130.00 price target.
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