UBS bullish on China, adds JD.com to focus list By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 03 2024
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Source: Investing.com
- UBS Analysts' Preference for Chinese Stocks: UBS analysts favor Chinese stocks the most among Asian peers, adding JD.com and China Communications Construction to their focus list due to a mix of internet stocks and defensives.
- Expected Outperformance of China in 2024: UBS anticipates China to outperform broader Asian markets this year with high single-digit returns from the MSCI China index.
- Barbell Approach to Investing in China: UBS suggests a "barbell" approach to investing in China, combining holdings in defensive sectors like financials, utilities, energy, and telecoms with growth names, particularly internet stocks.
- Risks and Benefits for JD.com: JD.com is expected to benefit from steady revenue growth, strong margins, increased buybacks, and stimulus measures, but faces risks from intense competition in China's e-commerce sector.
- Long-Term Outlook and Recommendations: UBS foresees a slowdown in Chinese growth stocks in the long term, recommending stocks with high consumer exposure and potential for global expansion.
Analyst Views on JD
Wall Street analysts forecast JD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for JD is 38.83 USD with a low forecast of 28.00 USD and a high forecast of 50.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
7 Buy
1 Hold
1 Sell
Moderate Buy
Current: 30.000
Low
28.00
Averages
38.83
High
50.50
Current: 30.000
Low
28.00
Averages
38.83
High
50.50
About JD
JD.Com Inc is a company principally engaged in the e-commerce business, including online retail and online marketplace mainly through its retail mobile apps and www.jd.com website (collectively, JD Platform). The Company operates its businesses through four segments. JD Retail segment, including JD Health, JD Industrials, and other components, mainly engage in online retail, online marketplace and marketing services in China. JD Logistics segment includes both internal and external logistics businesses. Dada segment is a local on-demand delivery and retail platform in China. New Businesses segment mainly include JD Property, Jingxi and overseas businesses. The Company mainly conducts its businesses in the domestic market and overseas markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
