Cigna earnings beat by $0.04, revenue topped estimates
On Thursday, Citi analyst Alicia Yap increased the price target for (NASDAQ:JD), the shares of JD.com, Inc., to $56.00, up from the previous $51.00, while reiterating a Buy rating on the stock. The adjustment comes after JD.com reported a revenue increase of 13.4% year-over-year in the fourth quarter of 2024, surpassing both Citi’s and the consensus estimates by 3.2% and 4.4%, respectively. According to InvestingPro data, JD.com’s stock has shown remarkable strength with an 80% return over the past year, while trading at an attractive PEG ratio of 0.27, suggesting potential undervaluation relative to its growth prospects.
JD.com’s non-GAAP net profit for the same period grew by 34% year-over-year to Rmb11.3 billion, exceeding Citi’s and consensus forecasts by 14.9% and 21.7%. This performance was largely driven by a 15.8% year-over-year rise in revenue from electronics and home appliances, bolstered by a successful trade-in program. Additionally, the company experienced an 11% year-over-year increase in general merchandise revenues, with the supermarket and fashion sectors showing strong double-digit growth momentum. InvestingPro analysis reveals the company maintains a strong financial health score of "GREAT," with robust cash flows and a solid balance sheet showing more cash than debt.
Looking ahead to the first quarter of 2025, Citi anticipates continued revenue and non-GAAP net profit growth for JD.com, projecting increases of 11% year-over-year for both metrics. This forecast is supported by a robust recovery in smartphone sales, sustained demand for computers, and a month-over-month recovery in appliance sales. With a P/E ratio of 11.25 and strong historical revenue CAGR of 19% over the past five years, JD.com shows promising growth potential. For deeper insights into JD.com’s valuation and growth metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.
In an effort to enhance the value proposition for its current users and improve delivery efficiency for its on-demand retail services, JD.com’s management is considering expanding into food delivery services. This move is seen as a natural extension of the company’s core retail business. Management has also reassured stakeholders of their disciplined investment approach.
Following the revision of estimates, Citi’s raised price target reflects a positive outlook on JD.com, viewing the company as a solid online retail play in the market.
In other recent news, JD.com reported strong fourth-quarter results, surpassing expectations and highlighting significant growth in user numbers and purchase frequency. Jefferies analyst Thomas Chong responded by raising the price target for JD.com to $64, maintaining a Buy rating, reflecting confidence in the company’s performance and strategic investments. Barclays (LON:BARC) also increased JD.com’s price target to $55 from $50, keeping an overweight rating, citing anticipated accelerated revenue growth and strong profit margins. Meanwhile, JD.com has renewed its interest in acquiring German electronics retailer Ceconomy AG, engaging in discussions with its large shareholders. Additionally, Citigroup (NYSE:C) strategists recommended adding Chinese consumer shares, including JD.com, to portfolios, noting the Chinese government’s focus on boosting domestic consumption. President Donald Trump confirmed the continuation of the duty-free exception for low-value packages from China, providing temporary relief for retailers such as JD.com. These developments underscore JD.com’s strategic positioning and potential for growth in the evolving market landscape.
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