Among the famous Hong Kong stocks, analysts have a Strong Buy consensus rating on JD.com, Inc. (HK:9618) and predict over 50% upside potential in the share price. Following the release of its better-than-expected Q1 2024 results, JD.com received six analyst ratings, including five Buy recommendations. The bullish analysts’ reviews make JD.com a promising option for investors in the Hong Kong market.
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Year-to-date, the stock has gained nearly 5%.
JD.com is a leading e-commerce platform in China, offering products such as electronics, home appliances, and groceries.
Recap of JD.com’s Q1 2024 Performance
In the first quarter of 2024, JD.com reported total revenue of ¥260.05 billion, which was 7% higher as compared to the corresponding period last year. Revenue surpassed the consensus estimate of ¥258.03 billion. It was mainly driven by the JD Retail segment, which generated a revenue of ¥226.83 billion. In Q1, the company saw a significant recovery in the supermarket category within the Retail segment.
Also, JD.com reported net income attributable to shareholders of ¥7.1 billion, marking a 13.9% year-over-year increase.
Recent Analysts Ratings
After the Q1 results, analysts from Nomura, DBS, Macquarie, Jefferies, and Goldman Sachs confirmed their Buy ratings on JD.com stock.
Among these, analyst Tsz Wang from DBS predicts the highest upside potential of 53.2%. Wang remains optimistic that the company’s restructuring efforts will boost growth in its retail business amid a sluggish economy. He expects revenue to grow at a CAGR (compound annual growth rate) of 7% p.a. from FY24 to FY26, driven by category expansion into groceries and healthcare. He projects adjusted earnings to increase by 5% annually in the next three years.
Wang believes that a demand recovery in JD.com’s electronics and home appliances categories, along with margin improvements in its marketplace, will drive the share price higher.
Is JD.com Stock a Good Buy?
As per the consensus among analysts on TipRanks, 9618 stock has been assigned a Strong Buy rating based on six Buys and one Hold recommendation. The JD.com share price target is HK$174.86, which implies an upside of 55% from the current price level.
