BUZZ-PDD Holdings falls after JP Morgan cuts PT
Shares of PDD Holdingshave decreased by 1.6% following JP Morgan's downgrade of its price target (PT). Despite challenges in financial visibility and intensified market competition, JP Morgan maintains that PDD is poised for double-digit profit growth in future quarters. PDD's management acknowledges potential pressures on revenue growth due to external factors. The stock has dropped 34% year-to-date, with 45 out of 48 brokerages still rating it as a "buy" or higher, and a median PT of .5.
Shares of Temu parent PDD Holdings (PDD.O) fall 1.6% to $94.4 premarket
Brokerage JP Morgan cuts PT to $170 from $180
PDD’s financial visibility has worsened with its re-investment message but this will not derail PDD from double-digit profit growth in coming quarters, JP Morgan says
Co plans to increase investment in development which will result in affecting its profitability, PDD says in post-earnings call
“Looking ahead, revenue growth will inevitably face pressure due to intensified competition and external challenges,” PDD’s Vice President of Finance Jun Liu says
PDD operates e-commerce platforms Pinduoduo in China and Temu for the international market
Forty-five of 48 brokerages rate PDD stock “buy” or higher, 3 “hold”; their median PT is $161.5
Up to previous close, stock down 34% YTD
