Freedom Broker reduced its price target for Pinduoduo Inc. to $150 from $160, citing mixed second-quarter 2026 results and weaker-than-expected domestic demand in China. The brokerage maintained its Buy rating on the stock, which was trading at $87.33 at the time of the report.
Benchmark also lowered its price target for Pinduoduo to $114 from $127 while keeping its Buy recommendation. The adjustments follow Pinduoduo’s reported adjusted earnings per share of $19.33, exceeding Wall Street estimates of $18.35 by 5.34%. Revenue, however, fell short at $112.36 billion against expectations of $113.90 billion, a miss of 1.35%. The company’s P/E ratio was noted at 9.1.
Analysts highlighted several headwinds, including weak domestic demand in China and intensified competition within the e-commerce sector. Pinduoduo has increased spending on merchant support, logistics infrastructure, and ecosystem development to bolster growth. Regulatory pressures and rising logistics costs in overseas markets further complicate its international expansion strategy, particularly in maintaining Temu’s price competitiveness. Benchmark emphasized that domestic operational constraints, such as merchant support and ecosystem investments, have weighed on monetization efforts.
