Freedom Broker reduced its price target for Pinduoduo Inc. to $150 from $140 on Tuesday, maintaining a buy rating as the company faces weaker-than-expected demand in China’s domestic market and intensifying competition.
The brokerage cited structural pressures in China’s e-commerce sector, including subdued consumer spending and aggressive pricing strategies from rivals, as key factors behind the downgrade. Pinduoduo’s shares, which closed at $87.33 on Monday, remain well below Freedom Broker’s revised target despite trading at a price-to-earnings ratio of 9.1.
Pinduoduo reported adjusted earnings per share of $19.33 for the second quarter of 2026, exceeding Wall Street’s consensus estimate of $18.35 by 5.34%. Revenue, however, came in at $112.36 billion, missing expectations of $113.90 billion by 1.35%. The company attributed the revenue shortfall to weaker domestic demand and increased investments in merchant support, logistics, and ecosystem development aimed at long-term growth.
Freedom Broker noted that regulatory and logistical challenges in international markets, particularly for Pinduoduo’s Temu platform, are adding uncertainty. Maintaining a competitive pricing edge in these regions has become more difficult amid rising costs and regulatory scrutiny, the brokerage said.
The firm also highlighted pressures on monetization stemming from domestic operational restrictions, including limitations on merchant support and ecosystem investments. Despite these challenges, Freedom Broker emphasized Pinduoduo’s strategic focus on strengthening its competitive position through sustained investment in key areas.
Benchmark, another financial institution, separately reduced its price target for Pinduoduo to $114 from $127 while maintaining a buy rating, reflecting a broader cautious outlook on the company’s near-term growth prospects.
