PDD Shares Up 1.22% with 30.88% Volume Drop as Analysts Hike Buy Targets and Institutions Split Holdings

On September 2, PDD Holdings (PDD) rose 1.22% to $121.69, with a trading volume of $1.00 billion, a 30.88% decline from the previous day’s activity. Analysts remain cautiously optimistic, with 8 firms upgrading or maintaining "Buy" ratings and 5 revising price targets higher in recent weeks. Key upgrades include Bank of America raising its target to $141 and Citi to $168, reflecting confidence in the company’s strategic resilience amid market challenges.

Institutional activity highlighted mixed positioning. The Manufacturers Life Insurance Company reduced its stake by 44.3%, while firms like IFP Advisors and Goldstream Capital Management increased holdings. Institutional ownership remains strong at 39.83%, indicating continued institutional confidence despite recent volatility. Analysts attributed recent revenue growth to new business models like "semi-entrusted" and "local fulfillment," offsetting U.S. market policy impacts.

Backtesting data shows PDD’s 12-month average price target stands at $144.56, representing a 20.25% upside from its last closing price. The highest forecast is $168, while the lowest is $120. Analysts have issued 13 ratings in the past three months, with a consensus of "Moderate Buy." Performance metrics indicate 50% of PDD’s EPS estimates were beaten over the past year, outpacing its industry peers. However, sales forecasts show limited upside, with next-quarter estimates ranging from $13.81B to $108.02B.