Macquarie analyst Ellie Jiang raised the firm’s price target on PDD Holdings (PDD) to $165 from $126 and keeps an Outperform rating on the shares. The firm notes the company’s Q2 results were better-than-feared considering competitive domestic EC and a challenging geopolitical environment for overseas, Temu. The significant intraday share price swing was a reflection of lack of transparency and management’s comments on “unsustained profitability” given their commitment to further support merchants and ecosystem quality, the firm says. Overall, Macquarie believes the trough has passed as the company clearly demonstrates its cost flexibility in light of market turbulence.
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