PDD Holdings stock wins Deutsche Bank upgrade as Temu faces EU scrutiny

PDD Holdings stock received a more constructive analyst view during the week. Deutsche Bank analyst Peter Milliken upgraded the rating from Hold to Buy on October 29 and maintained a 105 US dollar price target, according to Markets Insider. The analyst said the valuation was too attractive to overlook while also noting that market expectations appeared optimistic.

Temu faces tighter compliance demands

On October 26, the European Commission accepted Temu's action plan to remedy a breach of the Digital Services Act. Reuters reported that the plan covers five measures, including a review of possible weaknesses in content moderation and an assessment of how recommendation software may amplify illegal product listings.

The European Commission had imposed a 200 million euro fine on Temu in May for failing to do enough to prevent the sale of illegal products. Temu now has four months to conduct an interim risk assessment. The EU also applies a 3 euro charge to low-value e-commerce parcels entering the bloc, adding another cost consideration for platforms such as Temu.

These developments leave investors weighing a more supportive valuation view from Deutsche Bank against regulatory execution and compliance costs in Temu's European business. The upgrade is an analyst assessment rather than a guarantee of future share performance.

PDD Holdings stock traded at 70.40 euros on Lang & Schwarz at 10:06 CET on Saturday, October 31, 2026. See the real-time quote of PDD Holdings stock.

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