- Mizuho analyst James Lee reiterated a Buy and $90 price target on JD.com, Inc J.D. Lee recently hosted an investor call with management.
- He highlighted trends improved gradually from July to September, increasing confidence that revenue growth can improve 10 points in 2H22 from 2Q22.
- Lee sees the demand in the supermarket category remaining strong due to a mix shift from discretionary categories.
- The successful Apple Inc AAPL iPhone14 launch will also drive the demand for mobile phones, and further stimulus could improve consumption, a positive for JD.
- Logistic constraints have improved meaningfully in 3Q22, and Lee expects the cancellation rates and fulfillment costs to decline Q/Q and margins to improve sequentially.
- Lee said the net margins would improve Y/Y in 2H22 from enhanced efficiency and leverage of marketing.
- He maintained that JD.com is a top China Internet pick.
- Price Action: JD shares traded higher by 2.22% at $56.60 on the last check Monday.
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