PDD Holdings' 4Q Earnings Beat Eases Some Investor Concern
Dow Jones
Mar 26, 2025
PDD Holdings' 4Q earnings beat has soothed concerns among some investors regarding its profitability outlook, Deutsche Bank analyst Jessie Xu writes in a note.
The company's 24% revenue growth in 4Q was strong, especially given the fact that it wasn't as well-positioned as JD.com and Alibaba to benefit from the Chinese government's consumer trade-in program, Xu adds.
The analyst is less concerned about PDD's margin decline, and forecasts 25% revenue growth this year with CNY136 billion of net profit. The brokerage maintains a buy rating on the stock and raises its target price to $166.00 from $152.00. Shares last closed at $126.64.
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