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Investing.com - Bernstein SocGen Group has reduced its price target on JD.com, Inc (NASDAQ:JD) to $38.00 from $42.00 while maintaining an Outperform rating on the Chinese e-commerce giant. The stock currently trades at $30.71, just above its 52-week low of $29.90, suggesting potential upside according to InvestingPro data, which indicates the company is undervalued based on its Fair Value assessment.
The firm cited "overlapping investment cycles" at JD.com as a key factor in the price target reduction, though it noted these concerns may persist beyond the current quarter despite the company’s guidance for profit improvement in 2026. Despite these concerns, JD.com holds more cash than debt on its balance sheet, one of several positive InvestingPro Tips highlighting the company’s financial strength.
Bernstein highlighted that JD.com’s stock appears undervalued compared to competitors, noting that investors "appear happy to pay 11-12x forward PE for Alibaba and PDD’s e-commerce businesses," while JD.com’s valuation "feels very modest" in comparison. This assessment aligns with current data showing JD trading at a P/E ratio of just 10.45 with a 3.19% dividend yield, making it attractive for value investors. InvestingPro’s analysis of over 1,400 US equities includes comprehensive research reports that provide deeper insights into such valuation discrepancies.
The research firm acknowledged that JD.com continues to guide for 20% advertisement growth in Q4, and that the company’s use of food delivery to support e-commerce growth is "not wildly different from Alibaba ."
Bernstein also suggested that challenges related to tough Electronics & Appliances comparable sales figures are likely already factored into market expectations, as investors typically look 6-9 months ahead.
In other recent news, JD.com reported record-breaking sales during its Singles’ Day shopping festival, with a 40% increase in user orders and a nearly 60% rise in order volume. The company noted that its app saw the fastest growth in active users and received high consumer satisfaction ratings. Despite these strong sales figures, Morgan Stanley downgraded JD.com from Equalweight to Underweight, citing expectations of slowing revenue growth to 5.6% year-over-year in the fourth quarter of 2025. The firm also anticipates potential declines in home appliance and electronics sales.
Additionally, JD.com announced a collaboration with battery maker CATL and automaker GAC to launch a new vehicle, with public test drives starting at the end of October and an official release on November 9. The company is also in discussions with banks for a euro-denominated loan to finance its planned acquisition of German electronics retailer Ceconomy. HSBC Holdings Plc and Standard Chartered Plc are involved as lead arrangers for the loan. These developments reflect JD.com’s ongoing efforts to expand its business operations.
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