Citigroup: Raises Pinduoduo target price to $145, fourth quarter performance roughly in line with expectations.

Citibank released a report stating that Pinduoduo's fourth-quarter performance in 2025 is roughly in line with expectations in terms of revenue and operating profit, with transaction service revenue growth returning to 19% year-on-year, reflecting the normalization of tariff impacts and management portfolio models. The bank believes that the establishment of a co-chairman position will allow Zhao Jiazhen to take on more responsibilities to deal with domestic regulatory agencies, while allowing Chen Lei to have more time and resources to handle complex international relationships. Pinduoduo is committed to strategic investments to strengthen its supply chain capabilities, assist merchants in improving product quality, and extend its product reach to rural users. The bank believes that the market will be more willing to accept this supply chain investment, as it can bring substantial returns in the long run, especially in the era of artificial intelligence, not only consolidating Pinduoduo's competitive moat. The bank has raised its target price from $142 to $145, maintaining a "buy/high risk" rating.