Nomura Securities Starts JD.com, Inc (JD) at Neutral

Nomura Securities initiates coverage on JD.com, Inc (NASDAQ: JD) with a Neutral rating and a price target of $27.00.

Analyst Chao Wang said, "Uniquely positioned, but not yet CN Amazon. While we appreciate JD’s value in integrating the supply chain and building an extensive logistic network, we believe its current valuation has already fully priced-in its unique value. Since JD is still in the process of transitioning into a full-fledged eCommerce platform, and new businesses such as finance and O2O are still in incubation, we plan to remain conservative until we see any constructive progress. Our DCF-based valuation returns a TP of USD 27, implying 34x 2016F P/E (EPS: USD 0.81). While JD and Amazon share some similarities, in our view, the two companies should not be directly compared. We think JD has the potential to become a full-fledged eCommerce platform."

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 $25.83 yesterday.

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