Analyst Saiyi He from CMB International Securities maintained a Buy rating on JD and decreased the price target to $50.00 from $55.00.
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Saiyi He has given his Buy rating due to a combination of factors that highlight JD’s potential for growth despite current challenges. The analyst anticipates a significant increase in JD’s total revenue for the second quarter of 2025, projecting a 15.8% year-over-year growth, which is slightly above the Bloomberg consensus. This robust revenue growth is expected to be driven by strong performance in the Electronics and Home Appliance segment and general merchandise revenue.
Despite the anticipated decline in net profit due to increased investment in the food delivery business, Saiyi He remains optimistic about JD’s ability to improve unit economics through higher order volumes and optimized user subsidies. The analyst also notes the positive trends in daily active users and cross-selling opportunities from food delivery to JD Retail categories. While acknowledging the short-term impact on profitability, the long-term revenue forecasts remain unchanged, reflecting confidence in JD’s strategic investments and potential for sustained growth.
In another report released today, DBS also maintained a Buy rating on the stock with a $42.00 price target.