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At least two analysts downgraded the stock and several others cut estimates and price targets Friday.
Morgan Stanley analysts downgraded the stock to Equal Weight from Overweight while cutting their price target to $33 from $55.
“We expect the soft consumption sentiment and JD’s business and strategy adjustments to continue to weigh on its revenue growth and margins in 3Q23; the 4Q23 outlook also remains weak,” they commented. “Thus, we see uncertainties in growth and profitability in 2024.”
The analysts cut top-line estimates by 3% for 2023, 4% for 2024, and 7% for 2025.
Likewise, Macquarie analysts downgraded the stock to Neutral from Outperform and cut the price target to $32 from $52.
“Shares of JD have come off sharply from peak, and YTD underperformance indicates market concerns over its lacklustre growth outlook,” the analysts commented. “While much of the restructuring risk is now captured in market expectations, with multiples reaching historical low levels, we see limited catalysts ahead as JD still weathering a challenging macro environment and refocusing its strategy towards value-for-money categories.”
Elsewhere, Citi and Benchmark also lowered numbers.
Shares of JD are down over 50% year-to-date.
