Susquehanna cuts JD.com stock price target to $40

Published 15/05/2025, 11:50
Susquehanna cuts JD.com stock price target to $40

On Thursday, Susquehanna adjusted its stance on JD.com, Inc. (NASDAQ:JD), reducing the company’s price target from $45.00 to $40.00, while retaining a Neutral rating on the shares. The move follows JD.com’s report of a strong first quarter, which indicated further improvements in the macroeconomic environment and highlighted enhancements in user experience that have contributed to user growth. Trading at a P/E ratio of 9.07 and showing strong financial health with an InvestingPro Overall Score of "GREAT," the company appears undervalued according to InvestingPro’s Fair Value analysis.

The company remains positive about the future, citing macroeconomic improvements and the introduction of new initiatives such as food delivery services, which are expected to further drive growth. With revenue growth of 8.9% in the last twelve months and a healthy balance sheet showing more cash than debt, JD.com maintains strong fundamentals. Despite JD.com’s strong positioning within the expansive Chinese e-commerce market, Susquehanna’s analysts noted that macroeconomic uncertainties are likely to continue in the near term, prompting them to maintain their Neutral stance on the stock.

JD.com’s recent performance has been bolstered by the company’s focus on improving the user experience, which has resulted in increased user growth. The company’s optimism is also tied to the rollout of new initiatives, which are anticipated to contribute positively to growth trajectories. According to InvestingPro data, analysts maintain a bullish consensus on the stock, with price targets ranging from $32.97 to $69.90, suggesting significant potential upside. Get access to 10+ additional exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

Susquehanna’s revised price target reflects a cautious outlook due to the potential for ongoing macroeconomic uncertainty, despite the company’s solid first-quarter results and positive growth prospects. The firm’s analysis suggests that while JD.com is well-established in its market, external factors could impact its performance moving forward.

The price target adjustment by Susquehanna serves as an indicator of the firm’s current view on JD.com’s valuation, taking into account both the company’s internal developments and the broader economic context that may affect its future progress.

In other recent news, JD.com has reported impressive first-quarter results, surpassing expectations in both revenue and net income. This strong performance has led the company to increase its full-year 2025 guidance for its JD Retail division, anticipating double-digit growth in both revenue and net profit. Analysts have responded to these developments with mixed adjustments to their price targets. Benchmark lowered its price target to $53 while maintaining a Buy rating, acknowledging the company’s robust sales growth and optimistic outlook. Mizuho (NYSE:MFG) also reduced its target to $48 but retained an Outperform rating, noting strong user growth and revenue increases despite potential short-term margin pressure from investments in on-demand services. Conversely, Citi raised its target to $52, highlighting JD.com’s significant net profit growth and expansion into the food delivery sector. Jefferies increased its price target to $66, citing the company’s strong customer growth and Gross Merchandise Volume. Meanwhile, Morgan Stanley (NYSE:MS) lowered its target to $39, expressing concerns over the lack of guidance for JD.com’s food delivery business, despite the company’s positive revenue and earnings projections for 2025. These recent developments reflect JD.com’s ongoing efforts to expand its services and enhance efficiency, with analysts offering varied perspectives on the company’s future prospects.

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