Buy Rating on PDD Holdings Driven by Anticipated Growth in OMS Revenue and Non-GAAP Net Profit

Eddy Wang, an analyst from Morgan Stanley, maintained the Buy rating on PDD Holdings (PDD – Research Report). The associated price target remains the same with $150.00.

Eddy Wang’s rating is based on the anticipated growth in PDD Holdings’ online marketing services (OMS) revenue and non-GAAP net profit for the first quarter of 2025. He expects OMS revenue to grow by 11% year-over-year, which would indicate an 18% increase in gross merchandise volume (GMV), suggesting that PDD is gaining market share in the industry.
Furthermore, Wang forecasts a non-GAAP net profit of Rmb28 billion for the quarter, despite a high earnings base from the previous year and increased subsidies to merchants and consumers. This projection is considered a catalyst for the stock’s performance, with the potential for a modest increase in share price if these expectations are met. Wang assigns a 60% probability to this base case scenario, which supports his Buy rating on the stock.

In another report released on May 12, Citi also upgraded the stock to a Buy with a $165.00 price target.