[ET Net News Agency, 12 January 2021] Goldman Sachs lifted its target price for JD.com
Inc. (09618) to HK$445 from HK$393 and maintained its "buy" rating.
The research house said JD.com remains one of Goldman's top buy ideas for China Internet
for 2021 given its leading retailer scale in electronics, appliances, supermarkets, and
pharmaceuticals (by revenue).
Goldman believes the company can continue to harness the power of compounding with a
unique 1P online direct sales + marketplace model supplemented with its industry-leading
in-house warehousing and supply chain capabilities.
While the shares have re-rated strongly over the past two years, Goldman still sees (1)
sustainable top-line growth (driven by structural supermarket/groceries and pharmaceutical
1P business growth, and ongoing 5G product cycle in electronics), (2) steady margins with
upside (from scale, advertising and operating leverage of JD Retail offsetting incremental
Jingxi/grocery investments, with less drag from new businesses), and (3) growing valuation
of its subsidiaries & associates, including JD Health and Dada Nexus, driving a sustained
uptrend for its shares. (KL)