Stifel Nicolaus Remains a Hold on JD.com (JD)

By Jason Carr

Stifel Nicolaus analyst Scott Devitt maintained a Hold rating on JD.com (JDResearch Report) today and set a price target of $35. The company’s shares closed last Monday at $30.65.

Devitt noted:

“We are raising our estimates and taking our price target to $35. Revenue exceeds expectations: (+22.9% y/y) was above consensus expectations of ¥147.4B (+20.5% y/y). Net revenue from product sales increased +20.8% y/ y, while net revenue from services and others increased +42.0% y/y, versus our +19.1% and +44.7% estimates, respectively. Consumer electronics and appliance sales remained healthy increasing 15% y/y in the quarter (following a 14% increase last quarter). General merchandise increased 34% y/y, led by FMCG. Revenue compares against the the prior year which likely benefited sales growth over the summer, in our view. Annual active customers increased 11mm sequentially (up 3% q/q).”

According to TipRanks.com, Devitt is a top 100 analyst with an average return of 20.5% and a 66.2% success rate. Devitt covers the Technology sector, focusing on stocks such as Uber Technologies Inc, Eventbrite Inc, and Alphabet Inc.

JD.com has an analyst consensus of Strong Buy, with a price target consensus of $38.50.

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Based on JD.com’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $1.09 billion. In comparison, last year the company had a GAAP net loss of $347 million.

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JD.com, Inc. is a technology driven E-commerce company. It engages in the sale of electronics products and general merchandise products, including audio, video products, and books. The company operates through the following business segments: JD Mall, and New Businesses. The JD Mall segment represents its core e-commerce business.