JD.com Gets Break On Top-Line Miss; SunTrust Likes Growth Rate
JD.com (NASDAQ: JD) got a break from at least one analyst Monday after the Chinese e-commerce company posted a wider-than-expected loss.
SunTrust's Robert Peck cited the company's continued high growth rate in maintaining his Buy rating and $35 target.
"Operating profit was more subdued as the company is spending in several important areas," including marketing and warehouses, Peck said in a research note.
JD, sometimes called China's answer to Amazon.com, raised $1.78 billion in an initial public offering in May, and faces larger rivals like Alibaba and Tencent.
"The market in China is moving rapidly and JD faces stiff competition," Peck said.
On Friday, JD posted a loss of $0.35 per share compared with Wall Street's forecast of a loss of $0.02 per share. But revenue grew 64 percent to $28.61 billion -- essentially in line with expectations of $27.34 billion.
Peck likes the company's accelerating growth rate in adjusted revenue, or gross profit, which doubled in the recent quarter, as well as volume for general merchandise which more than doubled.
JD traded recently at $29.83, up 0.83 percent.
Latest Ratings for JD
|Apr 2015||JP Morgan||Initiates Coverage on||Overweight|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.