01:45 PM EDT, 05/24/2024 (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:

We lift our target price to USD200 from USD155, 13x our 2024 EV/EBITDA (peer median: 11x), on a projected ROE of 51% in 2024 (peer median: 20%). Q1 2024 EPADS of CNY18.96 (+241% Y/Y) was above our expectation. Revenue grew 131% Y/Y, driven by strong demand for value-for-money offerings, PDD's higher penetration into remote provinces in China, and the expanded merchant and product portfolio (supported by improved platform capabilities). Net margin rose 10%-pts Y/Y amid increased scale efficiency. We forecast robust revenue growth of 71% in 2024 and 29% in 2025, driven by projected improvements in consumer spending on potential rate cuts in the U.S., PDD's growing merchant and product portfolio, and better buyer services. We project net margin to improve to 31% in 2024 and 32% in 2025, as higher scale efficiency makes up for spending for agricultural initiatives, platform enhancements, and overseas expansion. We lift our 2024 EPADS forecast to CNY87.12 from CNY56.28 and 2025's to CNY116.13 from CNY75.37.