Pinduoduo May Achieve Profitability as Early as 2021 -- Market Talk

Dow Jones Newswires · Jul 8, 2020 16:24

DJ Pinduoduo May Achieve Profitability as Early as 2021 -- Market Talk

0824 GMT - Pinduoduo will likely be able to achieve profitability in 2021 as its cost-efficiency improves, Bocom International says, raising its target price to $95 from $73 and keeping the stock at buy. It expects the e-commerce company's selling-expenses-to-revenue ratio to come down in 2Q as China's overall consumption rebounds after the coronavirus pandemic. In the longer run, its sales-and-marketing-spending ratio should also continue to decline amid expanding scale and better efficiency, Bocom says, noting the improvement in cost efficiency is faster than expected. The brokerage expects Pinduoduo's 2Q loss at CNY1.6 billion but forecasts its adjusted-net-profit margin at 3% in 2021. Shares last closed 4.6% higher at $91.00. (yifan.wang@wsj.com)

(END) Dow Jones Newswires

July 08, 2020 04:24 ET (08:24 GMT)

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Pinduoduo May Achieve Profitability as Early as 2021 -- Market Talk

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