- Marzo 15, 2023
- Posted by: Oliver
- Categoria: Economics, Finance & accounting
JD is a Chinese e-tailer that’s not for the faint of heart. The stock has been crushed since peaking in 2021, sinking as low as ~65%. As shares get closer to new lows on the back of a muted guide, questions linger as to whether JD is still a worthy growth addition after last year’s tech wreck. I am bullish, but there are numerous concerns.
Starting with some good news, JD is fresh off a solid fourth quarter that saw EPS of $0.69, well ahead of the $0.51 consensus estimate. However, despite the earnings beat, the full-year guidance spooked investors.
For a while, it seemed like JD was signaling a big turnaround for the Chinese economy. Now, it looks like consumer spending may take more time to get up to speed after last year’s painful lockdowns.
JD CEO Lei Xu noted that China’s spending recovery was “imbalanced.” In any case, I do think JD will find its footing again once the Chinese consumer finally does experience a bigger bounce back, likely on the other end of a potential global recession.
At 14.2 times forward earnings and 0.4 times sales (52% lower than the sector median), JD stock is a relative bargain in e-commerce, supporting the bull case. There are risks, though. China’s uneven recovery and geopolitical risks are major question marks that value investors should consider.
What is the Price Target for JD Stock?
Again, analysts love JD, giving it a “Strong Buy” rating based on 11 Buys and one Sell. The average JD stock price target of $73.29 implies 81.1% upside.
