Investing.com -- U.S.-listed shares of Temu parent PDD Holdings Inc DRC (NASDAQ:PDD) declined roughly 4% at $100, after JP Morgan downgraded the stock to "neutral" from "overweight" citing limited financial visibility and short-term uncertainties.
“As the company provides limited details on its investment plans, visibility on short-term financials is too low to justify an investment case on a 6-month horizon, in our view, despite the company likely remaining competitive with business upside in the long-run,” JP Morgan analyst Andre Chang wrote in the note, while hacking price target on stock to $105 from $170.
PDD’s profits declined in third quarter as the company invested more in its business to remain competitive.
Chang noted that the looming announcement of new tariff policies on Chinese products by the U.S. government under Donald Trump poses additional risks to the stock.
JPMorgan suggested “investors might find better returns” in JD (NASDAQ:JD) and Alibaba (NYSE:BABA) over the next three to six months, given that all three companies currently trade at similar valuations.
Discount e-commerce player PDD Holdings reported third quarter revenue at 99.35 bln yuan, sending its ADR shares down in Thursday trading. A higher unemployment among Chinese youth and a crisis in the property sector have dented consumer confidence, weighing on Pinduoduo’s sales.
Stock has lost more than 30% so far this year.
Related Articles
Temu parent PDD extends decline after JP Morgan downgrades stock
AbbVie, Nvidia Lead Friday's Market Cap Stock Movers
VW labour representatives vote for strikes from early December
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。