PDD Holdings price target raised to $230 from $220 at Benchmark

Benchmark raised the firm’s price target on PDD Holdings to $230 from $220 and keeps a Buy rating on the shares after the company reported “another blowout quarter.” Temu loss came down substantially by 50% quarter-over-quarter and its loss ratio narrowed notably down to single digit, which the firm views as validating “the viability of the business model and signifies the strong operating leverage the business promises.” The firm, which raised its FY24 revenue estimate by 15% and non GAAP net income estimate by 30% and expects a similar raise on consensus, continues to identify PDD as “a standout growth stock in the China ADR space.”