Stifel Nicolaus Thinks JD.com’s Stock is Going to Recover

Stifel Nicolaus analyst Scott Devitt maintained a Buy rating on JD.com (NASDAQ: JD) on July 17 and set a price target of $50. The company’s shares opened today at $37.19, close to its 52-week low of $34.76.

Devitt commented:

“We expect JD.com to report 2Q:18 earnings in mid-August (TBD). We are forecasting topline growth of 33.2% y/y in 2Q, which is modestly above consensus expectations (32.1% y/y) and near the high-end of the guided range (28.8%-33.0% y/y). Our 2Q adj. net income margin estimate of 0.9% matches consensus expectations. We expect profitability to improve in the back half of the year driven by margin expansion in both JD’s core and logistics businesses, with the latter being driven by increasing utilization. We remain confident in the management team’s execution and support where investment dollars are focused as we believe the initiatives support greater long-term growth potential without sacrificing margin potential.”

According to TipRanks.com, Devitt is a top 100 analyst with an average return of 26.2% and a 75.5% success rate. Devitt covers the Technology sector, focusing on stocks such as Paypal Holdings, Alphabet Inc, and Mercadolibre.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for JD.com with a $46.67 average price target, which is a 25.5% upside from current levels. In a report issued on July 9, KeyBanc also maintained a Buy rating on the stock with a $51 price target.

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The company has a one-year high of $50.68 and a one-year low of $34.76. Currently, JD.com has an average volume of 13.58M.

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JD.com, Inc. is a technology driven E-commerce company. It engages in the sale of electronics products and general merchandise products, including audio, video products, and books. The company operates through the following business segments: JD Mall, and New Businesses. The JD Mall segment represents its core e-commerce business.