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Investing.com - CFRA raised its price target on JD.com, Inc (NASDAQ:JD) to $37.00 from $36.00 on Monday, while maintaining a Buy rating on the Chinese e-commerce giant. The stock currently trades at $29.31, near its 52-week low of $29.01, with InvestingPro data showing the company is undervalued based on its Fair Value assessment.
The new target price represents 5.6 times the company’s 2026 EV/EBITDA, below its three-year mean of 6.8 times, reflecting higher business risks from increased investments in new ventures, particularly food delivery. InvestingPro data shows JD.com’s current EV/EBITDA ratio stands at just 3.34, with a P/E ratio of 10.24, indicating the stock trades at relatively low valuation multiples.
CFRA forecasts JD.com’s revenue to grow 14% in 2025, driven by its expansion into food delivery, followed by 5% growth in 2026. The firm notes that increased value-for-money products, China’s expanded home appliance trade-in program, and government subsidies for electronics purchases will support e-commerce revenue growth. This aligns with JD.com’s recent performance, which showed 16.63% revenue growth in the last twelve months.
The investment firm projects JD.com’s net margin to decrease to 1.9% in 2025 from 3.6% in 2024, before recovering to 2.3% in 2026, as food delivery investments pressure near-term profitability. This margin pressure is notable as JD.com already faces challenges with a gross profit margin of 9.52% over the last twelve months.
CFRA raised its earnings per ADS forecasts for JD.com to CNY16.59 for 2025 and CNY21.98 for 2026, up from previous estimates of CNY11.11 and CNY18.44, citing a more favorable margin outlook and the stabilization of operating losses in new businesses at approximately 100% of that segment’s revenue in Q3 2025. Discover more insights about JD.com’s financial health and 12+ additional ProTips with a comprehensive Pro Research Report available on InvestingPro.
In other recent news, JD.com reported record-breaking sales during its annual Singles’ Day shopping festival, with user orders surging by 40% and order volumes increasing by nearly 60%. The company also highlighted the fastest growth in active users and top consumer satisfaction ratings for product quality, pricing, and service. Meanwhile, JD.com announced a collaboration with CATL and GAC to launch a new vehicle, with public test drives starting in late October and the official launch set for November 9.
On the financial front, JD.com’s third-quarter 2025 results showed strong topline growth, particularly in the General Merchandise and Marketplace segments, along with robust user expansion. However, Morgan Stanley downgraded JD.com to Underweight, citing expectations of slowing revenue growth to 5.6% year-over-year in the fourth quarter of 2025. The firm also expressed concerns over potential declines in home appliance and electronics sales. Additionally, Benchmark and Bernstein both lowered their price targets for JD.com to $38.00, while maintaining Buy and Outperform ratings, respectively. These adjustments reflect concerns over investment cycles and growth prospects, despite the company’s guidance for profit improvement in 2026.
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