Here's What Citi Thinks About PDD Holdings Inc. (PDD)

PDD Holdings Inc. (NASDAQ:PDD) is one of the best e-commerce stocks to buy now. On January 28, Citi adjusted the price target on PDD Holdings Inc. (NASDAQ:PDD) to $142 from $170 while maintaining a Neutral rating on the shares. The rating update came ahead of the fiscal Q4 report, with the firm telling investors that it sees slowing domestic retail sales offsetting a recovery of the U.S. traffic for Temu. Citi also expects increased expenses affecting PDD Holdings Inc.’s (NASDAQ:PDD) profitability in 2026.

Previously, Citi stated on January 21 that the State Taxation Administration of Shanghai announced a fine of Rmb 100,000 on PDD Holdings Inc. (NASDAQ:PDD) on its failure to complete rectification within the stipulated time period. The firm stated that following onsite checks reports by regulators, the fine is “smaller-than-feared”, and that it sees the announcement as removing an overhang on the stock’s shares.

In another development, Citi added a “downside 30-day catalyst watch” on PDD Holdings Inc. (NASDAQ:PDD) on January 20, maintaining a Buy rating on the shares with a $170 price target. It told investors that it sees further downside in the shares after Bloomberg reported on a deepening investigation of PDD Holdings Inc. (NASDAQ:PDD) by Chinese regulators. Citi added that a formal investment or announcement by the company acknowledging the investigation could further propel additional share downside.

PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational online commerce group and retailer that owns and operates a range of diverse businesses, with a solid logistics, sourcing, and fulfillment capabilities network that supports its operations. The company owns Pinduoduo, a popular online commerce platform in China, and also runs the fast-growing e-commerce marketplace Temu.

While we acknowledge the potential of PDD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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