JD.com, Inc (JD) PT Raised to $39 at HSBC, 'Increased visibility in growth outlook'
HSBC analyst Charlene Liu raised the price target on JD.com, Inc (NASDAQ: JD) to $39.00 (from $38.00) while maintaining a Buy rating.
The analyst comments "Increased visibility in growth outlook: 4Q23 product sales came in better than expected, hence we become more confident that JD can meet our expectations to deliver high single digit growth for both top line, GMV and retail revenue in 2024. Easy comp into 2024, especially FMCG, sustained outperformance in consumer electronics and uplift from reinvestment efforts. Even though the outlook for the property market may remain challenging, government stimulus which includes but is not limited to providing subsidies to consumers who trade in their old products for new ones can help defend growth in the consumer electronics segment. Low base aside, upgraded logistics services should disproportionately benefit the FMCG category. 3P monetization is still not a focus or priority. Growth between 1P and 3P GMV is expected to be more balanced into 2024, too. Overall our estimates are largely unchanged but we raise 2024-25e earnings by 2-4% on better than expected margin. The newly announced share buyback plan is a positive surprise. Alongside annual dividend payout of c24%, overall shareholder return will be lifted to 5~6%. We think potential M&A plans should not impact the shareholder return commitment in 2024. After introducing 2026 estimates and on our new estimates, we raise our TP to USD39 from USD38 and remain Buy on attractive valuation and increased confidence on top line and earnings growth."