07:55 AM EDT, 05/28/2026 (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 cut our target to USD82 (from USD95), 4.3x 2026 EV/EBITDA (three-year mean: 8.9x), factoring in projected earnings and execution risks due to higher business investments amid strong competition. We expect earnings to remain volatile as PDD ramps up business investments, particularly around its new first-party brand initiative, which management has identified as a core strategic priority. Product launches are expected in Q3 2026 and PDD has committed CNY100B to support the initiative, which may include fixed investments, product subsidies, and promotional spending, in our view. In addition, PDD is continuing its separate CNY100B merchant support program launched in April 2025. While we think these investments could strengthen PDD's long-term value proposition, for example through more competitive value-for-money offerings, the substantial scale of the spending is likely to weigh on near-term profitability. We trim 2026 and 2027 EPADS forecasts to CNY59.13 and CNY80.73 (from CNY73.07/CNY92.14), respectively.