0311 GMT - The upside for PDD Holdings will depend on the Temu bargain-shopping app's business performance, according to Morningstar's Chelsey Tam. The analyst notes that Temu is navigating increased governance and compliance costs. Second-quarter results from Temu's Chinese owner also suggest that the overseas business is slowing faster than expected. "The market is concerned about lackluster growth at Pinduoduo and the geopolitical risks Temu faces," Tam says in a note. With domestic platform Pinduoduo likely having reached a mature stage, "we think Temu's eventual turnaround can offer long-term upside," the analyst adds. Shares are also undervalued, she notes. Morningstar maintains its $141 fair-value estimate on PDD's ADRs, which last closed at $87.75.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.