- Mizuho analyst James Lee reiterated Buy on JD.Com, Inc JD with an $82 price target.
- JD beat profitability expectations meaningfully on improved efficiency and cost controls.
- The company improved the unit economics of core eCommerce while cutting back losses in CGB.
- Although the 4Q22 top-line growth would be soft compared to Street expectations due to elevated COVID cases and a slow macroeconomic environment, net income margins should expand by 60 bps due to disciplined expense management.
- The short-term setback is not structural and leaves FY24 EBITDA of 48 billion RMB unchanged.
- Lee maintained JD.Com, a top internet pick, as a structural share gainer in the eCommerce industry.
- Benchmark analyst Fawne Jiang reiterated Buy and price target to $100.
- As China is experimenting with a gradual reopening, he anticipates case uptick and, consequently, logistics disruptions in the near quarters.
- As such, Jiang decided to take a conservative approach and lowered our 4Q22 and FY23 revenue estimates.
- Nevertheless, mobility improvement should work in favor of gradual macro recovery and boost consumption.
- JD’s revenue growth could reaccelerate through FY23.
- In addition, structural factors that drive sustained margin improvement should help protect earnings risks despite short-term revenue uncertainties.
- Price Action: JD shares traded lower by 6.66% at $52.34 on the last check Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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