UPDATE: Stifel Starts JD.com, Inc (JD) at Buy

October 14, 2016 7:10 AM EDT
Get Alerts JD Hot Sheet
Price: $26.98 --0%

Rating Summary:
    16 Buy, 8 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 12 | Down: 9 | New: 1
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(Updated - October 14, 2016 10:15 AM EDT)

Stifel initiated coverage on JD.com, Inc (NASDAQ: JD) with a Buy rating and a price target of $34. Analyst George I. Askew highlighted the company's scale, management, brand, consumer trust and financial strength.

"We believe the company has the scale, management, brand, consumer trust and financial strength to expand its trusted eCommerce franchise while building out new businesses to serve existing customers. We believe JD.com’s strategy closely parallels that of Amazon.com, whereby the eCommerce segment is a low-margin leader upon which other higher margin businesses are built," said Askew.

"We believe the company has the scale, management, brand, consumer trust and financial strength to expand its trusted eCommerce franchise while building out new businesses to serve existing customers. We believe JD.com’s strategy closely parallels that of Amazon.com, whereby the eCommerce segment is a low-margin leader upon which other higher margin businesses are built," continued the analyst.

Askew added, "Of JD.com’s GMV of RMB525.2billion (US$83.3 billion) for the 12 months ended June 30, 2016, 60% was generated by the first-party merchant-of-record direct online sales business and 40% from the third-party commission-driven online marketplace business. Additional products and services include fulfillment and logistics services and financial services. We are particularly intrigued with the opportunities within JD Finance which provides financial services for consumers and suppliers, and New Dada which is an O2O marketplace featuring local merchants, online ordering and local delivery within hours."

For an analyst ratings summary and ratings history on JD.com, Inc click here. For more ratings news on JD.com, Inc click here.

Shares of JD.com, Inc closed at $26.27 yesterday.



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