PDD Holdings downgraded to ‘Hold’ from ‘Buy’ by DBS Bank.

PDD Holdings, a Chinese e-commerce company, has had its stock rating downgraded by DBS Bank from “Buy” to “Hold”. This is due to concerns about the company’s high valuation, declining fundamentals, and intense competition in the e-commerce space. Despite PDD’s strong revenue growth, the firm believes that the stock’s current price reflects its future earnings potential, making it overvalued. Additionally, DBS is concerned about the company’s increasing losses, particularly in its core e-commerce business, and the lack of clarity on how PDD plans to turn these losses around. Overall, the analyst thinks that PDD’s stock price is unlikely to outperform the market in the next 12 months, hence the “Hold” rating. This downgrade comes as a negative sentiment for PDD Holdings, whose stock has been under pressure in recent months. Other analysts have also expressed similar concerns, highlighting issues such as high operating expenses, intense competition from players like Alibaba and JD.com, and the impact of China’s economic slowdown on e-commerce growth.

Source: https://www.tipranks.com/news/the-fly/pdd-holdings-downgraded-to-hold-from-buy-at-dbs-bank?utm_source\u003dedition.cnn.com\u0026utm_medium\u003dreferral