Alibaba Rival PDD Has Major Upside with New Market Openings and Rising Adoption: Analysts
Portfolio Pulse from Anusuya Lahiri
PDD Holdings Inc (NASDAQ:PDD) shares rose after analysts raised their price targets following strong Q1 results. PDD reported a 131% YoY revenue growth to $12.02 billion, beating the consensus of $10.65 billion. Adjusted earnings per ADS were $2.83, surpassing the $1.42 consensus. Benchmark analyst Fawne Jiang raised the price target to $230, citing robust growth and reduced losses for Temu. Goldman Sachs analyst Ronald Keung reiterated a Neutral rating with a $145 price target, noting strong performance but muted share price reaction due to high expectations and concerns about sustainability.
May 23, 2024 | 6:43 pm
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NEUTRAL IMPACT
PDD Holdings' strong Q1 results and higher operating profit compared to Alibaba may put competitive pressure on Alibaba. However, the impact on Alibaba's stock is likely to be neutral in the short term.
While PDD's strong performance may increase competitive pressure on Alibaba, the immediate impact on Alibaba's stock price is likely to be neutral as the news primarily focuses on PDD's results.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
PDD Holdings reported strong Q1 results with 131% YoY revenue growth and EPS of $2.83, beating analyst expectations. Analysts raised price targets, citing robust growth and reduced losses for Temu.
The strong financial performance and raised price targets by analysts are likely to positively impact PDD's stock price in the short term. The significant revenue growth and reduced losses for Temu indicate strong operational performance.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100