PDD Holdings downgraded to Neutral from Buy at BofA

BofA downgraded PDD Holdings (PDD) to Neutral from Buy with a price target of $145, down from $170, ahead of the company’s Q3 report. The firm said there are downside risks in Q3 results as expectations remain high, with the analyst assuming more pressure from competition, regulation, and environmental, social, and governance perspectives, as indicated by management. BofA added that there is an unfavorable near-term risk/reward given the U.S. election overhang, as well as other upcoming downside catalysts such as low earnings visibility in the second half.