BofA Cuts PDD Price Target to $113, Maintains Neutral

Bank of America (BofA) lowered its price target on PDD Holdings Inc. (NASDAQ:PDD) from $140 to $113 on June 15, while maintaining a Neutral rating on the shares. The reduction follows a 6% cut in the bank's 2026-27 revenue forecasts for the company.

Rating Change

• Previous Price Target: $140
• New Price Target: $113
• Rating: Neutral

Analyst Rationale

Analysts at BofA cited the reduced revenue forecasts as reflecting potential weakness in PDD's platform performance, amid intensifying competition in e-commerce and regulatory challenges in China. However, the stock remains among high-conviction picks for hedge funds, suggesting some investors see a buying opportunity on the dip.

Context

The update comes after PDD showed strong growth in previous quarters, but concerns over slowing consumer spending in China and heightened competition from Alibaba and JD.com may weigh on growth prospects. No other major analysts have issued similar updates yet.

What to Make of It

The price target cut from BofA reflects a more cautious near-term view on PDD, but the Neutral rating indicates no major downside risks warranting a downgrade. Investors may watch the next quarter's results to gauge performance.