CMB International Securities Keeps 'Buy' Rating on PDD Holdings Stock with $146.30 Price Target

CMB International Securities maintains a "Buy" rating on PDD Holdings (PDD) stock with a price objective of $146.30. The analyst cites better-than-expected financial performance, revenue growth, and cost savings in sales and marketing expenses. Despite challenges from US policy changes and a competitive market, PDD Holdings demonstrated resilience through strategic investments in its platform ecosystem and supply quality.

CMB International Securities maintains a "Buy" rating on PDD Holdings (PDD) stock with a price objective of $146.30, reflecting the company's better-than-expected financial performance [2]. The analyst cited robust revenue growth, cost savings in sales and marketing expenses, and strategic investments in the platform ecosystem and supply quality.

Despite challenges posed by changes in U.S. policy and a competitive market, PDD Holdings demonstrated resilience during the second quarter of 2025. The company's revenue grew 7% year over year to reach about 104 billion yuan ($14.5 billion), while operating profit dropped by 21% year over year [1]. Executives emphasized the company's focus on long-term impact over short-term results.

PDD Holdings' strategic initiatives include a 100 billion RMB merchant support program aimed at fostering a robust marketplace and enhancing platform stickiness. The company's ability to diversify revenue streams, with online marketing services accounting for 53.6% of total revenue and transaction fees for 46.4%, buffers it against economic volatility [3]. Additionally, the company's $54 billion cash reserves and global cross-border expansion strengthen its resilience amid trade uncertainties and supply chain risks.

Analysts recommend a 3–5 year "Buy" at $180–$200/share, citing scalable platform growth and a 12% CAGR in the $1.2 trillion global e-commerce market [3]. Despite near-term profitability pressures, PDD's long-term fundamentals remain robust, with a P/E ratio of 18.5x and a forward PEG ratio of 1.2x.

References:
[1] https://www.pymnts.com/earnings/2025/temu-parent-pdd-holdings-reports-7percent-revenue-growth-despite-tariffs/
[2] https://www.tipranks.com/news/ratings/pdd-holdings-strategic-resilience-and-financial-strength-justify-buy-rating-ratings
[3] https://www.ainvest.com/news/pdd-holdings-resilience-global-trade-uncertainty-strategic-buy-commerce-exposure-2508/