10:35 AM EDT, 08/26/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our target price of USD110 (from USD85) represents 9.5x 2025 EV/EBITDA (three-year mean: 12x), factoring in projected earnings headwinds, due to higher business spending amid strong competition, and increased business risks in the U.S. amid trade tensions. We forecast slower revenue growth of 7%/11% in 2025/2026 (2024: +59%), amid intensified competition among e-commerce platform companies, with leading players such as Alibaba and JD.com expanding their value-for-money offerings. Additionally, PDD's enlarged three-year CNY100 billion merchant support program announced in April 2025 (from the CNY10 billion fee reduction initiative launched in 2H 2024) will include more fee cuts and weigh on its revenue growth, in our view. We project net margin to drop to 17%/22% in 2025/2026 (2024: 29%), due to the lowered merchant fees and higher spending for enhancing its business ecosystem. We keep our 2025 EPADS forecast at CNY48.96 (-36% from 2024's) and 2026's at CNY67.57.