Goldman Sachs has issued a research report expressing optimism that JD.com Inc (HKG: 09618) will see a revenue acceleration and a year-on-year profit recovery starting in the second half of this year, supporting a valuation re-rating.
The investment bank anticipates JD Retail's revenue for the second quarter will show a mid-to-high single-digit percentage decline year-on-year, primarily due to the high base of electronics and home appliance sales from the second quarter of last year. However, the report notes that these negative factors are already largely priced in by investors.
With the normalization of electronics and home appliance sales and the continued double-digit growth in general merchandise, Goldman Sachs expects JD Retail's growth to accelerate in the latter half of the year.
The firm maintains its "Buy" rating on the company, with a target price of HK$169 for its Hong Kong-listed shares and a target price of $43 for its US-listed shares (JD.com NASDAQ: JD).
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Goldman Sachs Forecasts JD.com Recovery in Second Half, Reiterates Buy Rating
Stock News06-11
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- Cosmograph·06-11[LOL] [LOL] [LOL] Yeah Ok suddenly they only return to profitability 2nd half. Based on which finger in the air here1Report