SunTrust Robinson Humphrey Sees Strong 2Q Driven By Order Growth And GP Margin Expansion For JD.Com

In a report published Monday, SunTrust Robinson Humphrey analyst Robert S. Peck reiterated a Buy rating and $35.00 price target on

. In the report, SunTrust Robinson Humphrey noted, “Maintaining our buy rating based on 5 key points: 1) Gross profit (or adjusted revenue as we think of it) grew >100% in 2Q vs. ~53% in 1Q led by the shift to Marketplace and advertising unit strength, 2) Organic GMV maintained strong growth at +85% vs. 86% in 1Q. Total GMV grew 108%, 3) Guidance for revenues remains healthy at +55-61% for 3Q, but operating profit was more subdued as spending is occurring in several important areas such as logistics and marketing, 4) Active Customers and Total Orders continue to expand at rapid rates, 5) Valuation is reasonable at 1.5x 2015 EV/Revs considering competitive positioning, growth, and general ecommerce trends in China.” JD.Com closed on Friday at $29.58.