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Investing.com - Mizuho lowered its price target on JD.com, Inc (NASDAQ:JD) to $40.00 from $42.00 on Friday, while maintaining an Outperform rating on the Chinese e-commerce giant. According to InvestingPro data, JD.com currently trades at an attractive P/E ratio of 9.12 and is considered undervalued based on its Fair Value analysis.
The firm cited positive developments in JD’s core retail business, noting revenue acceleration and margin expansion despite facing tough comparisons in the second half of the year, particularly in the fourth quarter regarding trade-in programs. The company has demonstrated solid growth with revenue increasing 14.47% over the last twelve months, though maintaining relatively low gross profit margins of 9.83%.
Mizuho expects JD.com to continue gaining market share, driven by improved supply chain capabilities and enhanced user experience across its platforms.
The research firm acknowledged that JD’s on-demand delivery service appears to be progressing as planned in attracting new customers and enabling cross-selling opportunities, though noted that "more remains to be seen" regarding its full impact.
While Mizuho views the combination of on-demand and traditional e-commerce offerings positively from a consumer perspective, the firm cited near-term margin pressure as a factor in its price target reduction. For deeper insights into JD.com’s valuation and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.
In other recent news, JD.com has announced a voluntary public takeover offer for all shares of Ceconomy AG at €4.60 per share in cash. This move follows the signing of an investment agreement between JD.com’s subsidiary, Jingdong Holding Germany GmbH, and Ceconomy. The German electronics retailer confirmed it is in advanced negotiations with JD.com regarding this potential acquisition. JD.com is in discussions with Ceconomy’s major shareholders, with any formal offer contingent on securing their support.
Additionally, Benchmark has lowered its price target for JD.com to $47.00 from $53.00, maintaining a Buy rating. This adjustment reflects JD.com’s significant investments in Food Delivery and Instant Commerce, with anticipated losses of approximately RMB 10 billion in these segments by the second quarter of 2025. In another development, China’s market regulator summoned JD.com, along with Meituan and Alibaba’s Ele.me, to discuss competition practices in the food delivery industry. The companies were urged to engage in rational competition and improve regulation of their promotional activities.
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