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Investing.com - UBS has significantly raised its price target on JD Health International Inc (HK:6618) to HK$78.50 from HK$51.50 while maintaining a Buy rating on the stock.
The price target increase follows JD Health’s first-half 2025 earnings beat and raised guidance, which prompted UBS to revise its earnings forecasts upward for the company.
UBS forecasts a 19% revenue compound annual growth rate (CAGR) for JD Health over 2024-27, up from its previous estimate of 15%, citing accelerating drug sales growth supported by rising online penetration of drugs and market share gains due to the company’s supply chain advantage.
The firm’s analysis suggests that drug sales CAGR on e-commerce platforms is likely to reach teens percentage growth over 2024-2029 under most scenarios, with JD Health’s adjusted net profit growth expected to normalize to 25% by 2027.
UBS believes the market may be overlooking JD Health’s revenue growth potential and margin upside, identifying potential catalysts including quarterly results beats, new drug launches, AI applications and monetization, and progress in government reimbursements for online orders.
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