Shares of PDD Holdings (NASDAQ:PDD) are up in at the moment’s buying and selling as Goldman Sachs upgraded the e-commerce large’s inventory from Maintain to Purchase after a 131% year-over-year income surge within the first quarter. Goldman Sachs additionally raised its value goal for PDD from $145 to $184. Analysts Ronald Keung and David Ma elevated their short-term on-line advertising income development and 2024-26 revenue estimates by 25-43% as a consequence of robust promoting income and improved “Temu unit economics.”
Regardless of triple-digit development charges, PPD solely trades at a price-to-earnings ratio of 20.3x. That is possible attributable to the truth that it’s a Chinese language inventory, which at all times carries the chance of unfavorable authorities intervention. In consequence, Keung believes that this lack of investor urge for food is stopping PDD from being valued at its full enterprise potential.
Is PDD Inventory a Purchase?
Turning to Wall Avenue, analysts have a Robust Purchase consensus ranking on PDD inventory based mostly on 5 Buys assigned previously three months, as indicated by the graphic under. After a 163% rally in its share value over the previous 12 months, the common PDD value goal of $223.34 per share implies 41.42% upside potential.
