Investing.com -- Shares of PDD Holdings (NASDAQ: PDD) could see near-term gains following the resolution of a key regulatory overhang, according to analysts at Morgan Stanley.

Analyst Eddy Wang labeled the stock a “Research Tactical idea” in a note on Friday.

Morgan Stanley “believe[s] the share price will rise in absolute terms over the next 15 days,” citing improved investor visibility after recent penalties imposed by China’s State Administration for Market Regulation (SAMR).

The regulator fined PDD RMB1.5 billion as part of broader enforcement actions tied to so-called “Ghost Takeaway” cases, which also involved several other major e-commerce platforms.

The penalty relates to PDD’s “failure to adequately verify the licenses and qualifications of food merchants” and shortcomings in food safety oversight.

While the fine highlights regulatory scrutiny, Morgan Stanley views the outcome as a positive turning point.

Wang stated that investors had been awaiting clarity on the issue since late 2025, and the resolution “could be seen as incrementally positive for PDD and its share price in the near term.”

Crucially, the removal of uncertainty appears to outweigh the financial impact of the penalty.

Morgan Stanley estimates there is an “80%+ (or ‘highly likely’) probability” that the stock will move higher in the short term.