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Added to YB: 2024-04-09

Pitch date: 2024-04-08

PDD [bullish]

PDD Holdings Inc.

-5.12%

current return

Author Info

No bio for this author

Company Info

PDD Holdings Inc., a multinational commerce group that owns and operates a portfolio of businesses. It operates Pinduoduo platform which provides various product categories, including agricultural produce, apparel, shoes, bags, mother and childcare products, food and beverages, consumer electronics, electronic appliances, furniture and household goods, cosmetics and other personal care items, sports and fitness, and auto accessories; and Temu, an online platform, which enables merchants to streamline their manufacturing and commercial operations.

Market Cap

$1.2T

Pitch Price

$118.00

Price Target

220.00 (+96%)

Dividend

N/A

EV/EBITDA

7.93

P/E

12.01

EV/Sales

1.82

Sector

Broadline Retail

Category

growth

Show full summary:
PDD Holdings: I'm Buying This Now

PDD Holdings (PDD): Exceptional growth, strong FCF at ~13x forward despite opacity. ~$8B net cash (20% of market cap). Gross margin compression concerning but likely temporary. 2024 rev growth could stabilize at 60% CAGR (vs 50% consensus). Massive FCF increase & cash pile from Temu's success. Potential for $15B+ FCF run rate in 2024. Risks: China-based, high volatility. $220 PT by mid-2025 driven by growth & cash generation.

Read full article (4 min)