Mizuho lowered its price target on JD.com (NASDAQ:JD) to $40 from $42 while maintaining an Outperform rating.
The analysts noted positive trends in the company’s core retail business, including revenue acceleration and margin expansion. While acknowledging tough comparisons in the second half, particularly in the fourth quarter due to trade-in promotions, Mizuho expects JD.com to continue gaining market share through improved supply and user experience.
The bank said the company’s on-demand business remains on track to attract new customers and drive cross-selling, although more progress is needed. Mizuho highlighted the appeal of combining on-demand services with traditional e-commerce from a consumer perspective, while noting potential near-term margin pressure.
