JPM Cuts 2023E Rev. & EPS for JD.com, Still Prefers Alibaba, PDD
JD's revenue growth was anticipated to rebound to above 10% over 2Q23-4Q23, as the company's efforts on enhancing pricing competitiveness should drive up third-party GMV and sales volume, $JPMorgan(JPM.US$ remarked.
Also, the progressively reduced dependence on lower-margin products and non-core businesses, coupled with the prudent approach when implementing the RMB10 billion subsidy program, should also provide support to $JD-SW(09618.HK$ 's adjusted net profit margin growth in 2023.
![JPM Cuts 2023E Rev. & EPS for JD.com, Still Prefers Alibaba, PDD](https://sgsnsimg.moomoo.com/feed_image/103055095/c57ddfd598ce3407ac987b1f52870102.png/bigmoo)
That said, JPMorgan acknowledged that, while the adjustments on existing operating strategies could resolve the fundamental issues behind the enervated growth, execution of such adjustments might be a difficult and laborious process. As such, the broker maintained the Neutral rating for the stock, and chopped the 2023E revenue and adjusted EPS for the company by 1% and 4%, respectively.
The H-share and US stock target prices for $JD-SW(09618.HK$ $JD.com(JD.US$ were set at $165 and USD42, respectively. JPMorgan also emphasized its preference for $BABA-SW(09988.HK$ and $PDD Holdings(PDD.US$ within the e-commerce sector.
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