PDD Holdings (PDD) reported Q1 2026 results below market expectations, yet Freedom Broker analysts maintain a Buy recommendation. They believe current investments in proprietary brands and logistics infrastructure may slow profit growth in the coming quarters but could lay the foundation for accelerated business expansion in the future. The target price for PDD shares has been revised down from $170 to $160, which still implies significant upside relative to current levels.
PDD Holdings is one of China’s largest e‑commerce players and the owner of Pinduoduo and Temu platforms. The company focuses on online retail, actively expands internationally, and competes with Alibaba and JD.com.
For the quarter, the company’s revenue rose 11% YoY to ¥106.2 billion, though it fell short of market expectations. Net profit declined 15% to ¥12.5 billion.
Freedom Broker notes that the company’s management is focused on long‑term growth. PDD announced a large‑scale ¥100 billion investment programme in proprietary brands over the next three years and continues to invest in supply chain and logistics optimisation.
According to analysts, these investments are temporarily pressuring business margins but should help reduce service costs, boost the company’s competitiveness in the domestic Chinese market, and support further international expansion.
Additional uncertainty stems from slowing consumer demand in China and intensifying competition from other major marketplaces. However, Freedom Broker believes that proprietary brands development, China’s economic recovery, and further overseas growth could become the main drivers of share price appreciation in the coming years.
Analysts maintain a Buy recommendation and a $160 target price per share.
Not an individual investment recommendation.