In a report released today, Fawne Jiang from Benchmark Co. maintained a Buy rating on JD, with a price target of $42.00.
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Fawne Jiang has given his Buy rating due to a combination of factors that highlight JD’s strong market position and strategic initiatives. JD.com demonstrated impressive revenue growth in the second quarter, significantly outperforming the broader industry, particularly in the 3C and home appliances sectors. This success was largely attributed to JD’s effective participation in China’s trade-in program, which bolstered its topline results.
Additionally, JD’s strategic reinvestment into its food delivery initiative has shown promising results in terms of user acquisition and engagement, despite posing challenges to profit margins. While there are concerns about potential growth headwinds and the need for JD to prove the return on investment from its newer initiatives, the company’s core strengths and leadership in key categories remain robust. The continued focus on strategic priorities, such as food delivery, and the adjustments in earnings forecasts reflect a balanced view of JD’s evolving growth and margin outlook, leading to a Buy rating with a revised price target.
Jiang covers the Consumer Cyclical sector, focusing on stocks such as Trip.com Group Sponsored ADR, JD, and Alibaba. According to TipRanks, Jiang has an average return of 18.0% and a 58.26% success rate on recommended stocks.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $37.00 price target.