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On Monday, Benchmark analyst Fawn Jiang increased the price target for JD.com, Inc (NASDAQ:JD) to $58, up from the previous $58, while maintaining a "Buy" rating on the shares. The adjustment comes after JD.com posted impressive fourth-quarter results for 2024, surpassing expectations in both revenue and net profit. The success was attributed to a combination of the trade-in program’s positive impact, which led to a 16% year-over-year growth in 3C+ home appliances, and fundamental enhancements in core categories and ecosystems, with service revenue climbing by 11%. The company’s strong performance is reflected in its impressive 88% return over the past year, with the stock currently trading at an attractive P/E ratio of 11.8x. InvestingPro analysis shows JD.com is currently undervalued, suggesting potential upside from current levels.
JD.com’s trade-in program not only contributed to the fourth-quarter surge but has also set the stage for an optimistic financial outlook for 2025. The company predicts high single-digit year-over-year growth in both revenue and net profit, which is more ambitious than the mid-single-digit growth anticipated by market analysts. The forecast suggests a strong start to the year, with double-digit growth likely in the first half and a moderation in the second half due to the comparison with a high base from the previous year. According to InvestingPro data, JD.com maintains a "GREAT" financial health score of 3.26, with analysts forecasting 9% revenue growth for FY2025. Get access to 10+ additional ProTips and comprehensive financial metrics with an InvestingPro subscription.
In light of these developments, Benchmark has revised its financial estimates for JD.com for the fiscal year 2025. The firm acknowledges the favorable policies that have propelled JD.com’s growth in the fourth quarter of 2024 and into 2025. Despite the potential for challenging comparisons in fiscal year 2026, the analyst expresses confidence in JD.com’s strategic initiatives. The company’s aggressive user base expansion, improved customer retention, and reinforced core category and ecosystem competitiveness are seen as key drivers for sustainable long-term growth.
JD.com’s focus on these strategic areas is expected to underpin the company’s performance moving forward. The uplifted price target of $58 reflects Benchmark’s belief in JD.com’s ability to maintain its growth trajectory and strengthen its market position.
In other recent news, JD.com has reported a strong financial performance, leading several analysts to adjust their price targets and maintain positive ratings on the company. Mizuho (NYSE:MFG) Securities raised its price target for JD.com to $50, citing accelerated revenue growth and margin improvement, supported by government trade-in programs and an expanded product selection. Similarly, Citi increased its price target to $56, highlighting a 13.4% year-over-year revenue increase in the fourth quarter of 2024, which surpassed both Citi’s and consensus estimates. JD.com’s non-GAAP net profit also grew by 34% year-over-year, driven by strong sales in electronics and home appliances.
Jefferies analyst Thomas Chong lifted the price target to $64, following JD.com’s strong fourth-quarter results and emphasizing the company’s competitive edge and growth in user numbers. Barclays (LON:BARC) also increased its price target to $55, expecting JD.com to benefit from consumption stimulus in 2025 and predicting accelerated revenue growth and strong profit margins. Citigroup (NYSE:C) strategists have recommended adding Chinese consumer shares, including JD.com, to portfolios due to the Chinese government’s focus on boosting domestic consumption.
These developments reflect a positive market sentiment toward JD.com’s strategic initiatives and growth potential. The company’s management has also been considering expanding into food delivery services, aiming to enhance value for users and improve delivery efficiency. As JD.com continues to navigate the evolving retail landscape, investors are closely monitoring its financial results and strategic moves.
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