UPDATE: JPMorgan Upgrades JD.com, Inc (JD) to Neutral

JPMorgan analyst Andre Chang upgraded JD.com, Inc (NASDAQ: JD) from Underweight to Neutral with a price target of $58.00 (from $40.00).

The analyst comments "While we still view JD as a good long-term investment target on compounding earnings growth given our view on its ability to consistently gain market share and improve margins, we don't think its share price will outperform marketplace ecommerce operators on a 3-to-6-month horizon, because 1) its revenue growth may face worse-than-expected headwinds from its high exposure to discretionary electronics/home appliance; 2) potential selling from Tencent’s shareholders who received JD’s shares in late March; and 3) forward P/E valuation is more stretched than most China ecommerce peers, which leaves revenue/earnings revisions as the only share price driver. We upgrade JD to Neutral with a new Dec-22 PT of US$58, reflecting our more balanced sector view now."

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 $51.55 yesterday.

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