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On Tuesday, Jefferies maintained a Buy rating on JD.com, Inc (NASDAQ:JD) and increased its price target to $66.00, up from the previous $66.00. This adjustment follows JD.com’s announcement of strong first-quarter results, which showcased continued double-digit year-over-year growth in quarterly active customers and Gross Merchandise Volume (GMV). Currently trading at $37.21 with a P/E ratio of 8.81, InvestingPro analysis suggests the stock is undervalued, with multiple ProTips indicating strong fundamentals.
According to Jefferies analyst Thomas Chong, the company’s performance exceeded expectations, with daily order volumes for food delivery approaching 20 million. Chong emphasized that JD.com’s focus on user experience, scale, and return on investment remains paramount. Supporting this view, InvestingPro data shows JD.com maintains a "GREAT" financial health score of 3.26, with robust revenue growth of 6.84% in the last twelve months. He also noted that local on-demand services and food delivery are a natural extension of JD.com’s core retail operations, presenting numerous opportunities for synergy.
Looking ahead to 2025, Jefferies has factored in an improved revenue forecast for JD Retail, as well as better segment operating profit following the first-quarter results. The firm’s continued endorsement of a Buy rating aligns with the broader analyst consensus of 1.34 (Strong Buy), indicating confidence in JD.com’s strategic direction and potential for further growth. Discover more detailed insights and 10+ additional ProTips with a subscription to InvestingPro.
JD.com’s first-quarter achievements reflect its ongoing efforts to expand its services and enhance efficiency. The company’s ability to maintain robust growth in active customers and GMV signals a strong market position and effective execution of its business model.
The increase in the price target to $66.00 by Jefferies represents a positive outlook for JD.com’s stock, suggesting that the firm anticipates further upward movement in the company’s valuation. This update provides investors with Jefferies’ latest perspective on the e-commerce giant’s financial health and future prospects.
In other recent news, JD.com has revised its financial outlook for 2025, projecting double-digit percentage growth in both group and JD Retail revenue and earnings. Despite this optimistic forecast, Morgan Stanley (NYSE:MS) adjusted its price target for JD.com from $41 to $39, maintaining an Equal-weight rating due to concerns about the lack of guidance for the company’s food delivery business. Similarly, Citi reduced JD.com’s price target from $56 to $51 but retained a Buy rating, noting a significant increase in order volume as the company expands into the food delivery sector. The hiring of Qing Guo from Meituan is seen as a strategic move to strengthen JD.com’s position in this area. Meanwhile, Chinese authorities have requested e-commerce platforms, including JD.com, to stop offering refunds without product returns, a move intended to ease financial pressure on merchants. JD.com has not commented on this regulatory development. These updates reflect the evolving landscape for JD.com and its strategic initiatives in the competitive e-commerce market.
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