Citi maintains a "Buy" rating on PDD, with a target price raised to $170

Citi released a research report indicating that Pinduoduo (PDD.US) showed solid performance in operating profit and net profit under non-GAAP for the third quarter, exceeding the bank's and market expectations by 3%, 10%, and 21%, 25%, respectively. Management reiterated its commitment to building a long-term sustainable and healthy ecosystem through the "100 Billion Subsidy" and "1000 Billion Support" programs. Citi believes that the related investments will impact the company's short-term revenue and profit growth performance, raising the target price from $167 to $170, maintaining a "Buy" rating, and considering the current price level to be undervalued