08:10 AM EDT, 05/29/2025 (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:

We keep our target price at USD85, 6.4x 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 H2 2024) may include more fee cuts, which will 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 cut our 2025/2026 EPADS forecasts to CNY48.96/CNY67.57 (from CNY72.31/CNY89.60), respectively.