JPMorgan analyst Andre Chang downgraded PDD Holdings (PDD) to Neutral from Overweight with a price target of $105, down from $170. The company’s sequential profit and margin decline in Q3 validated management’s message to reinvest on competitiveness, with PDD claiming to invest further, the analyst tells investors in a research note. The firm says that as the company provides limited details on its investment plans, visibility on short-term financials is too low to justify an investment case on a six-month horizon. JPMorgan suggests investors revisit the stock when the Trump Administration announces tariff policy against Chinese products and them PDD’s Q4 report in March shows stabilized profits and margins. Investors can find better returns from JD.com (JD) and Alibaba (BABA) in the next six months, contends the firm.
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