Eddy Wang, an analyst from Morgan Stanley, maintained the Hold rating on JD (JD – Research Report). The associated price target remains the same with $41.00.
Eddy Wang has given his Hold rating due to a combination of factors surrounding JD’s financial outlook and market conditions. The company reported strong results for the fourth quarter of 2024 and provided optimistic guidance for the first quarter of 2025, driven by policies such as trade-ins. However, the full-year 2025 earnings guidance appears conservative, with expectations of high single-digit growth year-over-year, which limits the potential for a significant re-rating of the stock.
JD’s management anticipates revenue growth in general merchandise and smartphones, although home appliance sales may grow at a slower pace due to earlier demand. The company’s investments in new business areas and a decline in JDL’s margin suggest stable net margins year-over-year. Despite raising earnings estimates for the coming years, the limited upside potential and conservative guidance contribute to the Hold rating, maintaining the price target at $41.00.