JD.com to Acquire Stake in China Logistics

JD.com’s (JD) real estate unit, JD Property Group Corporation, has reached an agreement to acquire stake in China Logistics Property Holdings. A regulatory filing indicated that the company would acquire a 26.38% stake in the storage facilities manager. JD Property will acquire the stake from the shareholder, Yupei International Investment Management, for HK$3.99 billion.

JD.com’s unit will acquire the stake at HK$4.35 a share, representing a 7.41% premium over the share price of China Logistics Property Holdings on September 1. The transaction should conclude if there is no governmental action, court order or investigation. Completion of the deal should take place on the fifth day after all conditions are met, or waived, as per the Sale and Purchase Agreement. (See JD.com stock charts on TipRanks)

Last month, Morgan Stanley analyst Eddy Wang reiterated a Buy rating on JD.com with a $78 price target, implying 2.32% downside potential to current levels. According to the analyst, the company’s second-quarter results were strong.

Wang stated, “Management noted a resilient consumption trend in July and August, and its increasing S&M spending should boost revenue growth and improve user engagement in 3Q21.”

Consensus among analysts is a Strong Buy based on 11 Buys and 1 Sell. The average JD.com price target of $93.58 implies 17.19% upside potential to current levels.

JD scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.