Read What Stifel Thinks Of Tencent's Stake Divestment In JD - Tencent Holdings (OTC:TCEHY), JD.com (NASDAQ:JD)

Recently JD.com Inc JD declared the exit of Martin Lau from the board and Tencent Holdings Ltd's TCEHY plan of distributing 457.3 million JD shares to Tencent shareholders to reduce its stake in JD from 17% to 2.3%.
Stifel analyst Scott Devitt said he believes no fundamental business impact on the ownership change and that JD's business is "performing very well."
Related Content: Read How Analysts Responded To Tencent's Divestment Of Stake In JD.com
However, he still views the news as unfavorable since investors have viewed JD as aligned with Tencent in its battle with Alibaba Group Holding Ltd BABA.
Though he contends that it is difficult to have any conviction in shares of companies like JD or Alibaba given "the changing operating conditions in China that never seem to end," Devitt continues to believe conditions will improve at some point.
Devitt keeps a Buy with a price target of $110 on JD, implying a 60.2% upside.
Price Action: JD shares traded lower by 1.25% at $67.79 in the premarket session on the last check Monday.