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On Tuesday, Citi analyst Alicia Yap increased the price target for JD.com, Inc (NASDAQ:JD) to $52.00, up from the previous $51.00, while reaffirming a Buy rating on the company’s shares. According to InvestingPro data, analysts maintain a strong Buy consensus with targets ranging from $31 to $71, while the stock currently trades at an attractive P/E ratio of 8.8x. Yap’s adjustment follows JD.com’s impressive first-quarter non-GAAP net profit growth, which soared 43% year-over-year to Rmb12.8 billion. This performance significantly surpassed both Citi’s and Bloomberg’s consensus estimates by 28.9% and 21.1%, respectively. InvestingPro analysis shows the company maintains excellent financial health with a "GREAT" overall score of 3.26, supported by strong cash flows and solid balance sheet metrics.
The robust financial results have been cited as a potential driver for JD.com’s decision to intensify its expansion into the food delivery sector. The company is currently handling an average daily order volume of nearly 20 million. Despite acknowledging the need for operational improvements, management has expressed satisfaction with the initial performance, which has exceeded expectations. The platform has seen a positive customer response, with high repurchase rates and successful cross-selling within JD Retail categories.
JD.com’s management has chosen not to provide specific guidance regarding the spending and profit impact of its food delivery venture due to the dynamic nature of the competitive landscape. However, they reiterated their expectation for JD Retail to continue achieving double-digit growth in both revenue and profit for the year 2025.
The slight increase in the price target to $52 is based on a 12 times multiple of the estimated earnings per share (EPS) of $3.47 for the year 2026, which remains unchanged from Citi’s previous valuation. Yap’s commentary supports the Buy rating, highlighting JD.com’s attractive valuation and the company’s commitment to delivering returns to shareholders.
In other recent news, JD.com reported strong first-quarter results, showcasing continued double-digit year-over-year growth in quarterly active customers and Gross Merchandise Volume. Jefferies responded by maintaining a Buy rating on JD.com and increasing its price target to $66, highlighting the company’s focus on user experience and return on investment. In contrast, Morgan Stanley (NYSE:MS) adjusted its price target for JD.com to $39 from $41, maintaining an Equal-weight rating due to concerns about the lack of guidance for the company’s food delivery segment. Meanwhile, Citi also revised JD.com’s price target to $51 from $56 but retained a Buy rating, citing the company’s strategic expansion into the food delivery sector. Additionally, Chinese authorities have reportedly requested e-commerce platforms, including JD.com, to stop requiring vendors to offer refunds without product returns, aiming to reduce financial pressure on merchants. JD.com declined to comment on this regulatory development. These recent developments reflect varying analyst perspectives and regulatory changes impacting the company’s strategic initiatives.
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