PDD Holdings Stock Forecast: Is Wall Street Underestimating the Stock?

PDD Holdings (PDD), the China-based e-commerce company behind Pinduoduo and Temu, may be underestimated by Wall Street despite recent volatility. While the stock pulled back after mixed third-quarter results, analysts continue to see value in its earnings strength and long-term growth setup.Claim 70% Off TipRanks This Holiday SeasonUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential Mixed Q3 Results Trigger Short-Term Pressure In the third quarter ended September 2025, PDD reported mixed results. Adjusted earnings per share rose 13% year-over-year to $2.97, well above Wall Street's $2.33 estimate. Net income also increased 13% to $4.4 billion, highlighting continued profit strength. Revenue, however, missed expectations. PDD posted revenue of $15.23 billion, up about 7% from a year earlier, but slightly below the $15.38 billion consensus forecast. The softer top-line growth reflected slower consumer spending in China and a more competitive pricing environment. Management said earnings could remain volatile as the company continues to invest in platform upgrades and merchant support, including its large incentive programs. Benchmark Sees Strong Long-Term Earnings Potential After earnings, Benchmark analyst Fawne Jiang reiterated a Buy rating and a $160 price target. Jiang said PDD's results reflect planned spending rather than weakening fundamentals. The firm also noted that Temu's growth is becoming more balanced across regions, which could reduce reliance on the U.S. market over time. Benchmark expects near-term uncertainty around margins and regulation but believes PDD's scale, cost control, and platform strategy support healthy long-term earnings. Bernstein Flags Domestic Risks, but Sees Value On the cautious side, Bernstein downgraded PDD to Market-Perform, arguing that the company's domestic business is maturing. The firm pointed to softer user engagement and slower ad growth, raising concerns about competition and future spending needs. Even so, Bernstein said valuation offers support, setting a $135 price target and noting that PDD trades at around 10x forward earnings. Outlook With strong profitability, global expansion, and a discounted valuation, many analysts believe PDD's current share price does not fully reflect its potential heading into 2026. Is PDD a Good Stock to Buy? Turning to Wall Street, PDD stock currently carries a Moderate Buy consensus rating, with the average PDD price target of $146.39, implying about 29% upside from recent levels. Analyst targets range from $118 to $167, reflecting divided views but suggesting that, on average, the stock's current price does not fully reflect its potential.