PDD Holdings Inc. (NASDAQ:PDD) is one of the top high-conviction stocks to buy according to hedge funds. BofA cut the price target on PDD Holdings Inc. (NASDAQ:PDD) to $113 from $140 on June 15 and maintained a Neutral rating on the shares. The firm told investors that it lowered its 2026-27 revenue forecasts by 6% and adjusted its net profit view by 21%-22% to take into account the increased ecosystem investments, which include commission rebates, merchant traffic support, and platform-funded coupons booked as contra revenue.

PDD Holdings Inc. (NASDAQ:PDD) also received a rating update from Barclays on May 28. The firm downgraded the stock to Equal Weight from Overweight, bringing the price target on the stock down to $89 from $165. The firm told investors in a research note that PDD Holdings Inc. (NASDAQ:PDD) reported its lowest non-GAAP net margin in five years in fiscal Q1. Barclays believes that the company's China revenue deceleration is likely to continue as its monetization faces headwinds, and added that PDD Holdings Inc. (NASDAQ:PDD) is entering the private label market, which could cause "friction" with merchants.

PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational online commerce group and retailer that owns and operates a range of diverse businesses. It also has a strong 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.

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