Macquarie Upgrades JD to Outperform, Raises TP to $159

Macquarie upgraded $JD-SW(09618.HK)$ to "Outperform" and increased the target price to $159, citing recovery in electronics, home appliances, and department stores. JD's retail revenue grew 6.8% YoY in 1FQ24, up from 3.4% in 4FQ23.

The broker highlighted JD's strong supply chain strategy and expected sales growth to rise from 2% in 2023 to 7% in 2024. Adjusted operating margins are forecasted to stabilize at 3.3%, with a 10% YoY earnings increase in FY24.

Macquarie's target price hike reflects confidence in JD's improved profitability and market position.