PDD (NASDAQ:PDD) Stock Rating Lowered by Morgan Stanley

Key Points

• Morgan Stanley downgraded PDD from Overweight to Equal Weight and cut its price target from $129 to $90; the new target implies 8.39% upside from the stock’s current price.
• Analyst sentiment is mixed but overall Hold: five analysts rate PDD Buy, ten Hold, and one Sell, with a consensus price target of $107.31.
• PDD reported quarterly EPS of $2.84 on revenue of $16.54 billion; analysts forecast full-year EPS of $10.02.

PDD (NASDAQ:PDD - Get Free Report) was downgraded by investment analysts at Morgan Stanley from an "overweight" rating to an "equal weight" rating in a note issued to investors on Monday, FinViz reports. They currently have a $90.00 price objective on the stock, down from their previous price objective of $129.00. Morgan Stanley's price target would indicate a potential upside of 8.39% from the company's current price.

Other research analysts also recently issued reports about the stock. Weiss Ratings upgraded shares of PDD from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, October 27th. JPMorgan Chase & Co. lowered their price objective on shares of PDD from $110.00 to $95.00 and set a "neutral" rating for the company in a research report on Thursday, September 10th. Zacks Research raised shares of PDD from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 25th. Bank of America reiterated a "neutral" rating on shares of PDD in a research note on Wednesday, August 26th. Finally, Benchmark cut their target price on shares of PDD from $127.00 to $114.00 and set a "buy" rating on the stock in a report on Tuesday, August 25th. Five investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $107.31.

PDD Stock Performance

PDD opened at $83.03 on Monday. The company has a market cap of $118.18 billion, a price-to-earnings ratio of 9.14, a PEG ratio of 0.66 and a beta of -0.03. PDD has a one year low of $71.94 and a one year high of $139.12. The business's fifty day moving average is $79.82 and its two-hundred day moving average is $90.54.

PDD (NASDAQ:PDD - Get Free Report) last announced its quarterly earnings data on Friday, August 14th. The company reported $2.84 earnings per share (EPS) for the quarter. PDD had a return on equity of 22.29% and a net margin of 20.73%. The firm had revenue of $16.54 billion for the quarter. On average, analysts predict that PDD will post 10.02 EPS for the current fiscal year.

Institutional Trading of PDD

Large investors have recently modified their holdings of the company. Nykredit A S acquired a new position in PDD in the 2nd quarter worth approximately $10,042,000. Public Employees Retirement System of Ohio purchased a new stake in shares of PDD in the second quarter valued at $9,491,000. Quantitative Investment Management LLC acquired a new stake in shares of PDD in the second quarter worth $2,599,000. Wasatch Advisors LP acquired a new stake in shares of PDD in the second quarter worth $3,658,000. Finally, NEOS Investment Management LLC grew its holdings in shares of PDD by 10.7% during the second quarter. NEOS Investment Management LLC now owns 404,232 shares of the company's stock valued at $30,835,000 after buying an additional 38,930 shares in the last quarter. Institutional investors and hedge funds own 39.83% of the company's stock.

PDD Company Profile

PDD Holdings Inc operates e-commerce platforms that connect consumers with merchants and other suppliers. Its businesses include Pinduoduo, a marketplace focused on China, and Temu, an international online marketplace.

Pinduoduo uses interactive shopping features, including group buying, and offers products across categories such as groceries, apparel, home goods and electronics. The platform has also emphasized agricultural products, connecting farmers with consumers and other buyers.

Temu serves customers in multiple markets outside China and offers a wide range of merchandise from suppliers and brands.

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