0313 GMT - PDD Holdings' Temu is likely to face challenges in the coming months amid tariff tensions, according to Citi analysts in a research note. Citi has observed a notable decline in sales on Temu's site, the analysts note. "Together with Temu's decision to also halt all goods that shipped directly from China...we believe Temu will gradually lose price competitiveness it used to enjoy and suffer further revenue decline from the U.S.," they say. Noting that this move wasn't unexpected, the analysts say that this is still a major setback to the company's global expansion ambition. "With more countries likely to scrutinize the imported goods of small parcels, Temu could face more sales headwinds in coming months," the analysts say. The analysts maintain a neutral/high risk on PDD Holdings, with a target price of its ADRs of US$127.00. Its ADRs were last traded at US$109.39. (tracy.qu@wsj.com)
(END) Dow Jones Newswires
May 07, 2025 23:13 ET (03:13 GMT)
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