Market Overview

Goldman Sachs Upgrades Pinduoduo On Normalizing China Internet Trends

Share:
Goldman Sachs Upgrades Pinduoduo On Normalizing China Internet Trends

Pinduoduo Inc’s (NASDAQ: PDD) gross merchandise value growth is likely to reaccelerate in the third quarter to 69% year-on-year, reaching 421 billion yuan ($63 billion), according to Goldman Sachs.

The Pinduoduo Analyst: Piyush Mubayi upgraded Pinduoduo from Neutral to Buy and raised the price target from $73.10 to $123.

The Pinduoduo Thesis: Looking at China’s internet trends in the third quarter, a sequential revenue recovery is likely in advertising, local services and cloud services, while a slowdown can be expected in e-commerce, gaming and entertainment, Mubayi said in the Tuesday upgrade note.

Pinduoduo’s GMV and user metrics are likely to have improved, driven by “our expectation that LTM (last 12 months) active buyers will steadily increase by 35mn qoq to 718mn, exceeding 700mn for the first time,” the analyst said.

This will further narrow the gap with Alibaba Group Holding Ltd (NYSE: BABA), he said. 

Pinduoduo has shown meaningful improvement in user engagement trends, with Pinduoduo’s time spent share among major e-commerce platforms rising to 41% and its daily average users remaining higher than Alibaba and JD.com, Mubayi said.

The company’s average daily sessions have increased steadily, the analyst said. 

PDD Share Price: Shares of Pinduoduo were up 6.41% at $97.49 at last check Tuesday. 

Courtesy photo. 

Latest Ratings for PDD

DateFirmActionFromTo
Nov 2020Nomura InstinetUpgradesNeutralBuy
Nov 2020JP MorganUpgradesNeutralOverweight
Nov 2020B of A SecuritiesUpgradesNeutralBuy

View More Analyst Ratings for PDD
View the Latest Analyst Ratings

 

Related Articles (PDD)

View Comments and Join the Discussion!

Posted-In: Analyst Color News Upgrades Price Target Global Analyst Ratings Movers Trading Ideas Best of Benzinga

Latest Ratings

StockFirmActionPT
IPGPNeedhamUpgrades280.0
XPEVJefferiesInitiates Coverage On54.4
VIACBarclaysDowngrades35.0
TEVCIBCInitiates Coverage On4.0
SYFJP MorganUpgrades46.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com