On Thursday, Citi reaffirmed its positive stance on NASDAQ:JD (NASDAQ:JD), maintaining both its Buy rating and its $43.00 price target for the shares of JD.com, Inc. The endorsement follows recent non-deal roadshow (NDR) meetings with JD.com's Director of Investor Relations, Mr. Sean Zhang, which took place on March 12 and 13 in Hong Kong.
During these meetings, several key topics were addressed, including JD.com's focus on execution and growth initiatives, the year-to-date trend, and the outlook for 2024. Discussions also revolved around the Chinese New Year Gala spending and new user acquisition strategies, the company's first-party supply chain, the third-party merchant ecosystem, the competitive landscape, and plans for capital allocation and shareholder return.
Citi's analysis indicates that JD.com's growth prospects appear more robust heading into 2024. This optimism is attributed to the normalization of supermarket categories, the execution and harvesting of strategic growth initiatives, and potential tailwinds from an expected macroeconomic rebound and demand from the home goods replacement cycle.
The firm's analyst highlighted the emerging visibility of JD.com's growth trajectory and suggested that any potential decline in stock price should be seen as an enhanced buying opportunity. This perspective is backed by the company's improving shareholder return and what Citi considers an undemanding valuation of the stock.
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