Citi upgraded PDD Holdings (PDD) to Buy from Neutral with a price target of $165, up from $127. The “bigger-than-expected and sooner-than-expected” tariff reduction is a positive outcome for China cross-broader sellers and is a positive read-through to Temu U.S. sales, the analyst tells investors in a research note. The firm views the 30% tariff as manageable for Chinese sellers, adding a portion of the cost will be offset through expense optimization and cost reduction. It upgraded PDD to Buy, saying the stock’s tariff overhang has been “largely reduced.”
Protect Your Portfolio Against Market Uncertainty
- Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter.
- Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on PDD:
- PDD Holdings upgraded to Buy from Neutral at Citi
- Morning Movers: Tariff pause jumpstarts stocks after U.S. and China reach deal
- US officials say deal reached with China to cut trade deficit, Reuters reports
- Mixed options sentiment in Pinduoduo (PDD), with shares down $-0.65 (-0.59%) near $109.25.
- Is Alibaba Stock (BABA) a Buy Ahead of Earnings?