PDD Holdings Inc. (PDD) Gets Upgraded to Buy From Neutral by Nomura

PDD Holdings Inc. (NASDAQ:PDD) is one of the most undervalued retail stocks to invest in now. PDD Holdings Inc. (NASDAQ:PDD) was upgraded to Buy from Neutral by Nomura on March 26, with the firm keeping the price target the same at $136. It told investors in a research note that the “tactical” upgrade is due to “cheap valuation”, with the stock trading at “merely” 8.6-times expected 2026 earnings, and half of its market cap is in net cash.

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The rating update came after PDD Holdings Inc. (NASDAQ:PDD) reported unaudited financial results for fiscal Q4 and the full year 2025 on March 25. Total revenues for fiscal Q4 2025 were RMB123,912.2 million (US$17,719.2 million), reflecting a growth of 12% from RMB110,610.1 million in the same quarter last year. Management attributed the growth to the increase in revenues from online marketing services and transaction services. Total revenues for the full year 2025 came up to RMB431,845.7 million (US$61,753.1 million), up 10% from RMB393,836.1 million in 2024, with the increase primarily due to the increase in revenues from online marketing services and transaction services.

PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational online commerce group and retailer that owns and operates a range of diverse businesses. It also has a strong logistics, sourcing, and fulfillment capabilities network that supports its operations. The company owns Pinduoduo, a popular online commerce platform in China, and also runs the fast-growing e-commerce marketplace Temu.

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