Bank of America Securities Maintained a Hold Rating on PDD Holdings (PDD)

PDD Holdings Inc. (NASDAQ:PDD) is one of the Undervalued Cyclical Stocks to Buy According to Hedge Funds. On June 27, Joyce Ju from Bank of America Securities maintained a Hold rating on PDD Holdings Inc. (NASDAQ:PDD) with a price target of $120.

The conservative outlook follows the company’s fiscal first-quarter results for 2025. The company posted mixed results for the quarter, with revenue growing 10.92% year-over-year but falling short of consensus by $1.05 billion. The EPS of $1.59 also missed estimates by $1.05. The profitability fell 38% year-over-year. Management noted that they made substantial investments to help merchants and consumers during a rapidly changing external environment, which led to a negative impact on short-term profitability.

Bank of America Securities Maintained a Hold Rating on PDD Holdings (PDD)

A close-up of a customer using the company’s e-commerce platform whilst shopping online.

PDD Holdings Inc. (NASDAQ:PDD) operates a range of digital commerce businesses that connect buyers, merchants, and manufacturers globally. The company’s platforms include Pinduoduo and Temu, which offer a wide variety of affordable products and engaging shopping experiences.

While we acknowledge the potential of PDD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PDD and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.