Citi upgrades PDD with tariff overhang ‘largely reduced’

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.”