Stifel Nicolaus Initiates Coverage on JD.com (JD)
Stock analysts at Stifel Nicolaus assumed coverage on shares of JD.com (NASDAQ:JD) in a note issued to investors on Wednesday. The firm set a “buy” rating and a $48.00 price target on the information services provider’s stock. Stifel Nicolaus’ price objective suggests a potential upside of 18.14% from the stock’s previous close.
The analysts wrote, “We resume coverage of JD with a Buy rating and a $48 price target. Key Points China is the largest eCommerce market in the world. The China eCommerce market should exceed $1T in sales with 20% penetration of total China retail sales by 2019. There are two companies for investors to own to benefit from current growth and future opportunities in China, Alibaba (BABA, Buy, $$174.64) and JD. We have followed the development and growth of the eCommerce market for many years and believe Alibaba and JD are both well-managed and well-positioned leaders in China. The two leaders have effectively shut Amazon out of the eCommerce market in the region. JD is the more structured player with controlled logistics and an initial first-party model that has grown into a first-party / third-party hybrid. JD should triple its 2013 market share (~6%) by year-end (~18%).””
A number of other equities analysts have also recently issued reports on JD. BidaskClub cut shares of JD.com from a “strong-buy” rating to a “buy” rating in a research note on Tuesday, August 15th. J P Morgan Chase & Co raised their price objective on shares of JD.com to $55.00 and gave the company a “positive” rating in a research note on Tuesday, August 15th. Instinet reiterated a “buy” rating and issued a $55.00 target price (up from $46.00) on shares of JD.com in a report on Tuesday, August 15th. reiterated a “buy” rating and issued a $49.00 target price on shares of JD.com in a report on Tuesday, August 15th. Finally, MKM Partners upgraded shares of JD.com from a “neutral” rating to a “buy” rating and increased their target price for the stock from $33.00 to $51.00 in a report on Wednesday, August 23rd. They noted that the move was a valuation call. One research analyst has rated the stock with a sell rating, four have given a hold rating and seventeen have issued a buy rating to the company. The stock has a consensus rating of “Buy” and an average target price of $45.65.
A number of institutional investors have recently added to or reduced their stakes in JD. FIL Ltd grew its position in shares of JD.com by 36.1% in the 2nd quarter. FIL Ltd now owns 9,860,118 shares of the information services provider’s stock valued at $386,713,000 after acquiring an additional 2,616,886 shares during the period. GQG Partners LLC bought a new position in shares of JD.com in the 2nd quarter valued at about $85,822,000. BARING ASSET MANAGEMENT Ltd bought a new position in shares of JD.com in the 2nd quarter valued at about $61,748,000. Ariose Capital Management Ltd bought a new position in shares of JD.com in the 2nd quarter valued at about $47,005,000. Finally, Rovida Advisors Inc. bought a new position in shares of JD.com in the 3rd quarter valued at about $43,403,000. 44.99% of the stock is owned by institutional investors and hedge funds.
JD.com, Inc is an online direct sales company. The Company engages in the sale of electronics and home appliance products and general merchandise products (including audio, video products and books) sourced from manufacturers, distributors and publishers in China on the Internet through its Website, www.jd.com.
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