Morgan Stanley has taken a more cautious view of PDD Holdings (PDD), lowering its price target and rating as it cites pressures in Chinese e-commerce and uncertainty over whether the company's cash will reward shareholders.
The bank now rates PDD's Nasdaq-listed shares Equal Weight and has set a $90 target. Its earlier call was Overweight, with a $129 target, making the new benchmark $39 lower.
Morgan Stanley questioned whether PDD's accumulated cash would produce returns for investors. It also cited competition and a less favorable growth outlook for China's e-commerce sector.
