China’s Xi speaks with Trump by phone, discusses Taiwan and bilateral ties
Investing.com - Susquehanna maintained its Neutral rating on JD.com stock (NASDAQ:JD) with a price target of $32.00, following the company’s third-quarter earnings report. The current stock price of $28.93 sits near its 52-week low of $28.21, with InvestingPro analysis suggesting the stock is undervalued compared to its Fair Value.
The Chinese e-commerce giant reported quarterly revenue that exceeded market expectations, though profitability fell short as the company continues to invest heavily in new business initiatives, particularly its food delivery service. JD.com has maintained solid revenue growth of 16.63% over the last twelve months, despite its weak gross profit margin of 9.52%.
Susquehanna noted that these ongoing investments are expected to continue impacting JD.com’s profit margins, though the company has expressed optimism about their long-term potential. InvestingPro data reveals JD trades at an attractive P/E ratio of 9.87, with additional ProTips available showing the company holds more cash than debt on its balance sheet.
The research firm acknowledged JD.com’s strong position within China’s substantial e-commerce market, which remains a fundamental strength for the company.
Despite these positive factors, Susquehanna cited macroeconomic uncertainty in China and JD.com’s current investment cycle as key reasons for maintaining its Neutral stance on the stock.
In other recent news, JD.com reported record-breaking sales during its annual Singles’ Day shopping festival, with a 40% increase in user orders and nearly a 60% rise in order volume. This event, one of China’s largest online shopping festivals, highlighted JD.com’s rapid growth in active users and high consumer satisfaction ratings. In terms of analyst activity, CFRA raised its price target for JD.com to $37, citing the company’s expansion into food delivery, while maintaining a Buy rating. Conversely, Benchmark and Bernstein both lowered their price targets to $38, maintaining Buy and Outperform ratings, respectively, due to concerns about growth and investment cycles. Morgan Stanley downgraded JD.com to Underweight, expecting a slowdown in revenue growth and potential declines in home appliance and electronics sales. These developments come as JD.com continues to navigate increased investments and market dynamics.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.