PDD Holdings Inc. (PDD) is a Buy on Robust Temu Business and Europe Growth

PDD Holdings Inc. (NASDAQ:PDD) is one of billionaire David Tepper’s top stock picks heading into 2026. PDD Holdings Inc. (NASDAQ:PDD) boasts a consensus Moderate Buy rating on Wall Street, comprising 7 Buys and 4 Holds. The average price target on the stock is $146.39, implying 30.74% upside potential.

PDD Holdings Inc. (PDD) is a Buy on Robust Temu Business and Europe Growth

The consensus Moderate Buy rating aligns with analysts at Benchmark, who reiterated on November 19 that the stock is a Buy with a $160 price target. The research firm’s positive stance is in response to the company’s solid third-quarter results characterized by moderate revenue growth. The company benefited from domestic ecosystem investments and a healthy increase in Temu’s international business.

PDD Holdings is also benefiting from Temu’s diversified business footprint beyond the US. Europe has emerged as a key driver for the international business segment, prompting the research firm to raise its 2025 and 2026 revenue forecast.

Meanwhile, analysts at BofA lowered their price target of the stock to $140 from $141 on November 19 while reiterating a Neutral rating. The price cut came amid concerns about a slowdown in the company’s online marketing services (OMS) revenue, which grew 8% year over year, down from 13% in the second quarter. OMS growth remains moderate as Pinduoduo surpasses 5 trillion RMB in gross merchandise volume.

PDD Holdings Inc. (NASDAQ:PDD) is a multinational e-commerce group that owns and operates popular online marketplaces, primarily Pinduoduo (in China) and Temu (globally), focusing on bringing value-for-money products and interactive shopping experiences to bring people into the digital economy, connecting consumers with businesses and manufacturers through social and group buying models.

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.

READ NEXT: 12 Best Industrial Stocks to Buy According to Wall Street Analysts and 12 Best 52-Week High Stocks to Buy Right Now.

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