Benchmark Reiterates Buy Rating for PDD

PDD Holdings Inc. (NASDAQ:PDD) has received a reaffirmed "buy" rating from Benchmark, as reported in their latest research note issued on Friday. The analyst firm set a target price of $160.00 for the company's shares, suggesting a potential upside of approximately 28.30% based on PDD's previous closing price.

Other Analysts Weigh In

In addition to Benchmark, several other equity research analysts have recently made their recommendations on PDD. Jefferies Financial Group revised their price target for PDD from $171.00 to $156.00, while maintaining a "buy" rating on the stock in a report published on Thursday. Conversely, JPMorgan Chase & Co. downgraded PDD from an "overweight" rating to "neutral" and reduced their price target from $170.00 to $105.00 in their report dated November 22nd. On the same day, Dbs Bank lowered its rating from "strong-buy" to "hold." Meanwhile, Nomura reiterated a "neutral" rating with a revised price target of $130.00, down from a previous $137.00.

Market Consensus on PDD

Currently, the consensus among market analysts positions PDD with a "Moderate Buy" rating. Out of the analysts, four have provided a hold rating, eight have issued a buy rating, while two analysts have given a strong buy rating, according to data compiled by MarketBeat.com. The average price target across these ratings stands at $168.09.

PDD's Recent Price Performance

As of Friday, PDD shares opened at $124.71. The company showcases strong financial stability with a current ratio of 2.15, a quick ratio of 2.15, and a notably low debt-to-equity ratio of 0.02. PDD's market capitalization is approximately $171.59 billion, and it possesses a price-to-earnings (P/E) ratio of 12.19. The stock has fluctuated between a 12-month low of $88.01 and a high of $164.69 within the same period. Its 50-day moving average price is $115.12, while the 200-day moving average stands at $112.92.

Quarterly Earnings Results

PDD recently reported its quarterly earnings results on March 20th, where it announced earnings per share (EPS) of $20.15, exceeding the consensus estimate of $2.56 by a substantial margin. The company achieved a return on equity of 46.08% and a net profit margin of 29.05%. Total revenue reached $110.61 billion, although it fell short of the anticipated $115.77 billion. Year-over-year, PDD's revenue saw a growth of 24.4%. Analysts project that the company will report an EPS of 10.24 for the current fiscal year.

Institutional Investor Activity

Recent activity among institutional investors shows notable adjustments in their holdings of PDD shares. The California State Teachers Retirement System increased its position by 7.1% during the fourth quarter, now owning 324,354 shares valued at approximately $31.46 million after acquiring an additional 21,507 shares. Other entities, including 111 Capital and Wealthedge Investment Advisors, also made new investments, with the former purchasing around $508,000 and the latter $666,000 in PDD shares. Institutional and hedge fund ownership presently constitutes about 39.83% of PDD's stock.

About PDD Holdings Inc.

PDD Holdings Inc. operates as a multinational commerce group, overseeing a diverse range of businesses. Notably, it administers the Pinduoduo e-commerce platform, which offers a wide array of product categories, such as agricultural goods, clothing, home essentials, electronics, cosmetics, and more. The company also owns Temu, an additional online marketplace.

PDD, Rating, Benchmark