In a report released today, Saiyi He from CMB International Securities maintained a Buy rating on PDD Holdings (PDD – Research Report), with a price target of $170.40.
Saiyi He has given his Buy rating due to a combination of factors influencing PDD Holdings’ financial outlook. The company’s revenue for the fourth quarter of 2024 showed a significant year-over-year increase, although it slightly missed consensus expectations due to adjustments in transaction service fees. Despite this, PDD’s non-GAAP net profit exceeded expectations, driven by favorable non-operating items like foreign exchange gains.
Furthermore, Saiyi He anticipates a 12% growth in non-GAAP net profit for 2025, supported by PDD’s strong consumer engagement and platform improvements. The stock’s current valuation appears attractive, with a potential for re-rating spurred by improved consumer sentiment and reduced geopolitical risks. Consequently, the target price has been adjusted upwards, reflecting a positive long-term outlook for the company.
In another report released today, Barclays also maintained a Buy rating on the stock with a $158.00 price target.