Re: JD.com (JD)
Posted: Wed Aug 30, 2017 3:32 pm
not vested
China Stocks to Buy: JD.com (JD)
One of China’s largest retailers, JD.Com Inc(ADR) (NASDAQ:JD) is seeing a rapid growth in sales from the country’s exploding middle class.
The Beijing-based company has seen revenue explode 44% year-to-date. So it is not surprising that MKM Partners analyst and managing director, Rob Sanderson, has now reassessed his JD rating.
On Aug. 23, he upgraded the stock to Buy and boosted the price target big-time from $33 to $51. The new target translates into a substantial 25% upside from the current share price.
Sanderson says the company’s valuation is attractive with shares currently down from $48 to $40. Crucially, Sanderson now feels that — even in the face of tough competition from larger rival Alibaba — Chinese e-commerce is powerful enough to support “a strong number two.”
At the same time, he says the company’s direct sales model is “sustainably differentiated” from BABA’s third-party marketplace offering.
Finally, Sanderson is optimistic on macro trends supporting the company and says JD can increase margins. This will enable JD.com to achieve sustainable profitability.
He concludes: “We think that JD’s opportunity to increase margin remains unchanged and would recommend buying the recent weakness.”
Overall the stock has a Strong Buy analyst consensus rating. And most importantly, the average analyst price target comes in at a sizable 17% above the current share price.
Source: Investor Place
China Stocks to Buy: JD.com (JD)
One of China’s largest retailers, JD.Com Inc(ADR) (NASDAQ:JD) is seeing a rapid growth in sales from the country’s exploding middle class.
The Beijing-based company has seen revenue explode 44% year-to-date. So it is not surprising that MKM Partners analyst and managing director, Rob Sanderson, has now reassessed his JD rating.
On Aug. 23, he upgraded the stock to Buy and boosted the price target big-time from $33 to $51. The new target translates into a substantial 25% upside from the current share price.
Sanderson says the company’s valuation is attractive with shares currently down from $48 to $40. Crucially, Sanderson now feels that — even in the face of tough competition from larger rival Alibaba — Chinese e-commerce is powerful enough to support “a strong number two.”
At the same time, he says the company’s direct sales model is “sustainably differentiated” from BABA’s third-party marketplace offering.
Finally, Sanderson is optimistic on macro trends supporting the company and says JD can increase margins. This will enable JD.com to achieve sustainable profitability.
He concludes: “We think that JD’s opportunity to increase margin remains unchanged and would recommend buying the recent weakness.”
Overall the stock has a Strong Buy analyst consensus rating. And most importantly, the average analyst price target comes in at a sizable 17% above the current share price.
Source: Investor Place