Citi lowered the firm’s price target on Pinduoduo to $115 from $127 but keeps a Buy rating on the shares. The analyst states that considering the challenging macro and COVID-disrupted Q4, the 38% growth in online marketing revenue and 86% growth in commission fee revenue that drove the 43% growth in profit are stronger than the company’s peers. Citi warns however that the higher base and higher expenses related to fast expansion plans of Temu are likely to weigh on Pinduoduo margins.
Published first on TheFly
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