Analysts slash PDD Holdings’ price targets and ratings amid lower profit forecasts and rising ecosystem investment costs.
BNP Paribas initiated coverage of PDD Holdings (NASDAQ:PDD) with an Underperform rating and a $89 price target. The move follows BofA cutting its target to $113 from $140 while maintaining a Neutral rating, citing a 6% reduction in 2026-27 revenue forecasts and a 21%-22% adjustment to net profit expectations due to higher ecosystem investments.
Barclays also downgraded PDD to Equal Weight from Overweight on May 28, lowering its price target to $89 from $165. The firm noted PDD’s lowest non-GAAP net margin in five years during fiscal Q1. The company’s increased spending on commission rebates, merchant traffic support, and platform-funded coupons has pressured profitability.
PDD Holdings operates Pinduoduo and Temu, two major e-commerce platforms in China, supported by a robust logistics and fulfillment network.