Daiwa downgraded PDD Holdings after China’s 6.18 shopping festival grew just 0.9% year-over-year, signaling weak consumption trends.
Daiwa downgraded PDD Holdings (NASDAQ:PDD) to Hold from Buy and slashed its price target to $80 from $145 on June 24, 2026. The firm cited a “negative surprise” in China’s 6.18 shopping festival, where gross merchandise value rose only 0.9% year-over-year, down from a 15% increase in 2025.
The downgrade follows a broader trend of lowered expectations for PDD. BofA reduced its price target to $113 from $140 earlier in June, while Benchmark cut its target to $127 from $160 last month. Both firms cited weaker-than-expected Q1 results and elevated investments in merchant support and platform incentives.
Daiwa highlighted a “tough” macro backdrop, tightening regulations, and a scaled-back national trade-in program as headwinds for China’s e-commerce sector. PDD’s prioritization of ecosystem health over monetization has also weighed on near-term earnings visibility.