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Research Alert: CFRA Keeps Sell Opinion On Adss Of Pdd Holdings Inc.
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Research Alert: CFRA Keeps Sell Opinion On Adss Of Pdd Holdings Inc.
Mar 25, 2026 10:51 PM

01:20 AM EDT, 03/26/2026 (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 at USD95, based on 4.7x 2026 EV/EBITDA (three-year mean: 9.3x), factoring in projected earnings risks due to higher business investments. PDD cautioned that its profitability will remain volatile due to business investments, and it reiterated that long-term value creation will take precedence over short-term profits. For example, management previously commented that more strategic initiatives to support merchants and buyers will be rolled out. With the expanded CNY100 billion merchant support initiatives, we expect 2026 earnings to remain below 2024 level. Management also highlighted uncertainties arising from rapid regulatory changes. Against a backdrop of increased regulatory scrutiny of internet platforms, any compliance lapses could introduce share price volatility, in our view. We raise our 2026 EPADS view to CNY73.07 (from CNY67.57) to factor in a higher revenue estimate, but still see significant margin risk from the business investments. We set our 2027 EPADS forecast at CNY92.14.

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