Temu Owner Likely to Continue Facing Short-Term Headwinds -- Market Talk

Dow Jones
2024/12/12

0435 GMT - China's PDD Holdings, which operates retail platform Temu, will likely continue to face short-term headwinds, Citi analysts led by Alicia Yap say in a research note. U.S. President-elect Donald Trump's proposed 25% tax on products from Mexico could result in higher costs for Temu's parcels in the coming months, the analysts say. The challenges that Temu faces in Vietnam and expensive operation costs in Brazil is also adding pressure to PDD Holdings' profitability, Citi adds. Citi maintains a neutral rating/high risk on PDD Holdings, with a target price of $US125.00 for its ADRs. They last traded at US$103.42. (tracy.qu@wsj.com)

 

(END) Dow Jones Newswires

December 11, 2024 23:35 ET (04:35 GMT)

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