06:30 AM EDT, 03/25/2024 (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 USD155 (from USD130), 15x 2024 EV/EBITDA (peer median: 11x) on a projected ROE of 36% (peer median: 20%). Q4 2023 earnings per ADS (EPADS) of CNY16 (+146% Y/Y) exceeded our expectation on higher-than-expected revenue growth of 123% Y/Y (9M 2023: +75% Y/Y), supported by increased demand for value-for-money offerings in China and the U.S. and PDD's promotional activities. Net margin grew 2%-pts Y/Y to 26% (9M 2023: 23%) on improved scale benefit, despite increased R&D and SG&A expenses. We forecast robust revenue growth of 38%/21% in 2024/2025, driven by a projected improvement 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 stabilize at about 24% in 2024, as higher scale efficiency makes up for spending for agricultural initiatives and platform enhancement, before increasing to 27% in 2025. We lift 2024 EPADS forecast to CNY56.28 (from CNY44.43) and start 2025's at CNY75.37.