Bank of America Securities Maintains Hold Rating on PDD Holdings (PDD) Stock

PDD Holdings Inc. (NASDAQ:PDD) is one of the Most Undervalued Long Term Stocks to Buy Right Now. On May 27, Bank of America Securities analyst Joyce Ju maintained a “Hold” rating on the company’s stock, setting a price objective of $140.00. The analyst’s rating was backed by several factors, such as PDD Holdings Inc. (NASDAQ:PDD)’s softer‑than‑expected top‑line and profit performance in the recent quarter.

Bank of America Securities Maintains Hold Rating on PDD Holdings (PDD) Stock

The company’s revenue grew by low-double digits, while key online marketing services income increased slightly, falling short of market expectations and the broader industry. This might signal that there is a loss of momentum in PDD Holdings Inc. (NASDAQ:PDD)’s core domestic e‑commerce business. Notably, in Q1 2026, the company’s total revenues came in at RMB106.2 billion (US$15.4 billion), implying 11% growth from RMB95.7 billion in Q1 2025.

However, the analyst believes that the underlying operations were sound as non‑GAAP operating profit expanded at a strong pace, thanks to healthy transaction‑service growth and stable margins.

PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group, which is engaged in owning and operating a portfolio of businesses.

While we acknowledge the risk and potential of PDD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PDD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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