Fawne Jiang, an analyst from Benchmark Co., maintained the Buy rating on JD. The associated price target was lowered to $47.00.
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Fawne Jiang has given his Buy rating due to a combination of factors that highlight JD.com’s strategic positioning and growth potential. Despite the short-term setback in margins due to substantial investments in Food Delivery and Instant Commerce, JD.com is expected to benefit from robust retail sales growth in China, particularly in the 3C and home appliance sectors. These sectors have shown solid momentum, supported by trade-in programs, and JD.com is positioned as a key beneficiary of these trends.
Moreover, JD Retail continues to thrive under favorable industry conditions, with expectations of double-digit growth in general merchandise, driven by supermarkets and fashion. While the investments in new initiatives are costly, they are strategic in nature, aiming to enhance user growth and supply chain modernization. Although these investments have led to a revised lower net margin forecast, the long-term strategic value and potential for revenue growth justify the Buy rating, even with a reduced price target of $47.
Jiang covers the Consumer Cyclical sector, focusing on stocks such as Trip.com Group Sponsored ADR, Macy’s, and JD. According to TipRanks, Jiang has an average return of 17.8% and a 57.76% success rate on recommended stocks.
In another report released today, Bernstein also maintained a Buy rating on the stock with a $43.00 price target.