Analysts rate Pinduoduo (PDD:NSD) with a Buy rating and a $60 target

Benchmark raised the PDD stock price target from $85 to $107.

Based on the Pinduoduo stock forecast from 9 analysts, the average analyst PDD stock price target is USD 60.82 over the next 12 months. Pinduoduo’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of PDD stock forecast is Slightly Bullish, which is based on 9 positive signals and 5 negative signals. At the last closing, Pinduoduo’s stock price was USD 66.04Pinduoduo’s stock price has changed by +18.11% over the past week, +17.03% over the past month and -30.47% over the last year.

About Pinduoduo (PDD:NSD):

Pinduoduo Inc., through its subsidiaries, operates an e-commerce platform in the People’s Republic of China. It operates Pinduoduo, a mobile platform that offers a range of products, including apparel, shoes, bags, mother and childcare products, food and beverages, fresh produce, electronic appliances, furniture and household goods, cosmetics and other personal care items, sports and fitness items, and auto accessories. The company was formerly known as Walnut Street Group Holding Limited and changed its name to Pinduoduo Inc. in July 2018. Pinduoduo Inc. was incorporated in 2015 and is headquartered in Shanghai, the People’s Republic of China.

 

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

PDD stock predictions shows that the stock has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity:

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt:

The company is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the PDD stock forecast and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow:

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth:

PDD stock predictions shows that the stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth:

PDD stock predictions shows that the stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

High volatility:

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings:

PDD stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

PDD stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

PDD stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis:

PDD stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.