JD (JD – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Thomas Chong from Jefferies remains neutral on the stock and has a $80.00 price target.
Thomas Chong has given his Buy rating to JD’s stock due to a combination of factors. Firstly, JD had a successful Double-11 marketing campaign this year, with the number of users and order volume experiencing double-digit growth. This growth was facilitated by strategies such as free shipping for Plus members and a best price guarantee for customers. Moreover, JD’s sales performance in October was better than the previous year, indicating a positive growth trend.
In addition, the number of third-party (3P) merchants on JD is rapidly increasing. The company is successfully onboarding more merchants and converting them into active ones, with the growth in 3P users outpacing the overall user base. JD aims to expand the merchant base further, providing a diverse selection for consumers. The company’s Everyday Low Price (EDLP) strategy, which is key for both first-party (1P) and 3P strategies, is also a significant factor. JD ensures high-quality products at competitive prices and great customer service for 1P users, and a wide product selection for 3P users. Lastly, JD’s ROI approach to user acquisition, which considers uncertainties in the macro environment, also contributed to the Buy rating.
In another report released on November 16, Benchmark Co. also reiterated a Buy rating on the stock with a $67.00 price target.
See the top stocks recommended by analysts >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
JD (JD) Company Description:
Incorporated in 1998, China-based JD.com is a technology driven e-commerce company and operates through two business segments, JD Mall, and New Businesses. It is the largest retailer in China and provides electronics products and general merchandise products, including audio, video products, and books. JD.com offers its products through its website JD.com and mobile apps, as well as directly to customers.
Read More on JD:
