JD.com, Inc. Class A, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Lei Yang CFA from CGS-CIMB reiterated a Buy rating on the stock and has a HK$140.00 price target.
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Lei Yang CFA has given his Buy rating due to a combination of factors that point to an improving outlook despite near-term earnings pressure. He views 4Q25 as a likely trough in profitability, with JD Retail hurt mainly by a high comparison base from prior government appliance subsidies and a temporary shift in consumer spending ahead of new 2026 incentives, rather than by structural weaknesses. General merchandise categories such as supermarket and fashion continued to post solid growth, partially offsetting the slowdown in home appliances and supporting the core retail franchise.
At the same time, Lei Yang highlights that losses in JD’s new businesses, particularly food delivery, are narrowing as subsidy efficiency improves, average order values increase, and delivery operations become more productive. He expects further quarter-on-quarter improvement in 1Q26, helped by a lower comparison base in electronics and home appliances and the eventual introduction of commissions in food delivery once the 2025 waiver period ends. Coupled with a discounted cash flow valuation that supports a target price of HK$140 and the prospect of stronger revenue growth and margin recovery in FY26 from product mix upgrades and a healthier third-party ecosystem, these factors underpin his positive stance on the stock.
In another report released yesterday, UOB Kay Hian also maintained a Buy rating on the stock with a HK$155.00 price target.