JD.com price target raised to $44 from $37 at BofA

BofA raised the firm’s price target on JD.com (JD) to $44 from $37 and keeps a Buy rating on the shares. The firm estimates Q3 revenue to grow 4.9% year-over-year, in-line with expectations, and expects better gross margin and efficiency measures across operations to underpin margin expansion, modeling year-over-year improvement in Group non-GAAP net margin to 4.6%. Non-GAAP net profit is estimated to be up 12% year-over-year, which is 5% above consensus, as the firm assumes both JD Retail and JD Logistics are emphasizing more controllable profit growth in Q3, the analyst tells investors in a preview.