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Investing.com - US Tiger Securities raised its price target on Pinduoduo Inc. (NASDAQ:PDD) to $120.00 from $100.00 on Monday, while maintaining a Hold rating on the Chinese e-commerce company. Currently trading at $128.28, the stock has gained over 31% year-to-date, according to InvestingPro data.
The price target adjustment follows Pinduoduo’s better-than-expected second-quarter 2025 profit performance, which US Tiger Securities attributed to lower operating expenses rather than fundamental business strength. The company maintains impressive gross profit margins of nearly 60% and boasts an "EXCELLENT" overall financial health score, based on InvestingPro’s comprehensive analysis.
Despite the profit beat, US Tiger Securities noted concerning underlying trends, including a slowdown in revenue growth to single digits despite heavy investment by the company.
The research firm expressed caution about Pinduoduo’s margin outlook, suggesting that profitability will likely remain volatile as management continues to reinvest in subsidies, logistics, and overseas expansion efforts.
US Tiger Securities cited limited visibility into Pinduoduo’s business due to competitive pressures in China and uncertainties in overseas markets as key reasons for maintaining its Hold rating despite the higher price target.
In other recent news, PDD Holdings Inc. reported its second-quarter 2025 earnings, exceeding market expectations. The company achieved an earnings per share (EPS) of 22.07, notably higher than the forecasted 14.8. PDD Holdings also reported revenue of 103.98 billion RMB, surpassing the anticipated 103.2 billion RMB. These results highlight the company’s strong financial performance in the recent quarter. Despite the positive earnings and revenue figures, there are concerns among investors regarding profitability fluctuations and intense market competition. Such concerns were reflected in the pre-market stock movement. Analysts continue to monitor the company’s performance closely, considering the competitive landscape. These developments provide investors with important insights into PDD Holdings’ financial health and market position.
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