JD.Com Inc. (JD) Stock Surges 9.1% on Friday: Analyst Upgrades and Strong Q4 Forecasts Drive Gains

JD.Com Inc. (JD) shares surged by 9.1% on Friday, closing at $38, as analysts at Jefferies and JPMorgan Chase upgraded the stock and raised their price targets. The positive sentiment was driven by strong Q4 revenue and earnings forecasts, as well as the company's robust performance during the Double-11 shopping festival.



Jefferies analysts raised their price target to $60 from $54 and maintained a 'Buy' rating, citing better-than-expected performance in JD retail revenue and segment online program management. They forecasted revenue growth of 9.6% year-over-year, up from their earlier estimate of 6%, to RMB 335 billion. Additionally, they estimated JD's non-GAAP net profit to grow by 16% year-over-year in Q4, with margins expected to expand from 2.6% to approximately 2.9%.



JPMorgan Chase analyst Andre Chang also upgraded JD.com's stock rating to 'Overweight' (a buy recommendation) from 'Neutral' and raised his price target to $36 per share from $33. The analyst noted that management has changed its strategy to focus on higher margins, which inspired him to raise his forecasts for annual non-GAAP adjusted net income in both 2024 and 2025.

The positive analyst sentiment was further supported by the company's strong Q2 results, which were unveiled on Thursday. JD.com reported a net income figure that nearly doubled year-over-year, indicating robust financial performance.



In addition to the analyst upgrades and strong Q4 forecasts, JD.com's stock price surge can also be attributed to its impressive performance during the Double-11 shopping festival. The company demonstrated strong execution and solid performance, benefiting from trade-in programs and robust growth in its general merchandise category.

In conclusion, JD.Com Inc. (JD) stock surged by 9.1% on Friday, driven by analyst upgrades and price target increases from Jefferies and JPMorgan Chase. The positive sentiment was further supported by strong Q4 revenue and earnings forecasts, as well as the company's robust performance during the Double-11 shopping festival. As the company continues to focus on higher margins and innovative strategies, investors may see further gains in the stock's price.