10:00 AM EDT, 04/01/2025 (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 USD100, down from USD93, is 6.4x 2025 EV/EBITDA (three-year mean: 12x), factoring in our projected earnings pressure in 2025, due to higher business spending amid strong competition. We forecast slower revenue growth of 18%/15% in 2025/2026 (2024: +59%). We anticipate that competition among e-commerce platform companies will intensify, as leading players such as Alibaba and JD.com are actively expanding their businesses overseas, improving their delivery services, and increasing value-for-money offerings. Additionally, in 2H 2024, PDD launched a CNY10 billion fee reduction program for merchants, which could weigh on its fee revenue growth, in our view. We project net margin to ease to about 23%/26% in 2025/2026 (2024: 29%), driven by PDD's higher spending for enhancing its business ecosystem. Furthermore, the fee reduction program for merchants will further pressure PDD's margins, in our view. We trim our 2025 EPADS forecast to CNY72.31 from CNY73.64 and start 2026's at CNY89.60.