On Monday, Bernstein SocGen Group maintained a bullish stance on Pinduoduo Inc. (NASDAQ:PDD), reiterating an Outperform rating with a steady price target of $150.00.
The firm reflected on recent discussions with investors following Pinduoduo's third-quarter earnings report, noting the company's commitment to increased spending and its successful delivery on that guidance.
The analysis pointed out Pinduoduo's unique challenges due to its reliance on distributor stock and white label goods, which may be a disadvantage in scenarios where government relations influence the allocation of consumption vouchers. Despite the costs associated with subsidizing purchases to maintain user buying habits, Bernstein highlighted the significant potential for Pinduoduo's cross-border e-commerce platform, Temu, particularly in markets outside the United States.
Looking forward, Bernstein drew parallels with Meituan's performance earlier in the year, suggesting that investors might anticipate a similar trajectory for Pinduoduo. The firm suggested that a forward price-to-earnings (PE) ratio of 10-12 times based on estimated 2026 earnings could be within reach for Pinduoduo by the next year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.