Morgan Stanley analysts maintained their Overweight rating on Pinduoduo (NASDAQ:PDD) with a $181 price target, ahead of Q4/23 results due on March 20. As a consequence, the company’s shares gained more than 4% intra-day today.

The focus is on Pinduoduo's online marketing services (OMS) revenue, expected to grow 47% year-over-year, suggesting robust performance amid weak consumer spending.

Despite potential gains from the overseas platform, Temu, recent negative news and legislative scrutiny in the U.S. could pose challenges. The analysts presented three scenarios for Q4 outcomes and their stock implications: Scenario 1 (base case) expects 45-50% OMS growth with a 0-5% stock price increase; Scenario 2 is more optimistic with over 50% growth, potentially lifting the stock 5-15%; Scenario 3, less than 45% growth, could lead to a >10% price drop.