JD.com 'Unique' But Not Yet Amazon

JD.Com JD is uniquly positioned, but not ready to be the Chinese Amazon, according to Nomura.

Analyst Chao Wang writes, “While we appreciate JD’s value in integrating the supply chain and building an extensive logistic network, we believe its current valuation has already fully priced-in its unique value.”

In addition, Nomura is conservative because JD is in the process of launching several new business lines.

The research house started JD with a neutral rating and $27 price target. The $27 price target is based on 34 times 2016 PE.