ICBCI analyst Zeping Zhao lowered the price target on Pinduoduo Inc. (NASDAQ: PDD) to $134.20 while maintaining a Outperform rating.

The analyst comments "PDD reported 4Q25 revenue of RMB 123.9bn (+12% YoY), broadly in line with consensus. Transaction services revenue was the key driver at RMB 63.9bn (+19% YoY), fueled by Temu's global momentum and a more favourable competitive backdrop for Duo Duo Grocery, while online marketing services growth moderated to +5% YoY amid decelerating GMV and tighter merchant ad budgets. Cost and opex growth outpaced topline, driven by higher fulfilment costs and continued S&M investment. Non-GAAP operating profit grew modestly to RMB 29.5bn (+5% YoY), though non-GAAP net income declined 12% YoY to RMB 26.3bn on elevated tax expenses. Looking ahead, near-term profitability will be weighed down by PDD's multi-year domestic supply chain investments — including free village delivery, agricultural origination, and the newly launched "Xin Pin Mu" brand incubation platform backed by a planned RMB 100bn commitment over three years. The more compelling valuation narrative lies in the international business, where Temu has successfully recalibrated its operating model and re-accelerated growth across key markets, despite ongoing regulatory and trade policy headwinds. Maintain OUTPERFORM and cut TP to USD 134.20."