JD Stock Surges After JP Morgan Puts It On ‘Positive Catalyst Watch': Retail’s Upbeat

ADR shares of JD.com ($JD) surged nearly 10% on Friday after the e-commerce company was put on "positive catalyst watch” by JP Morgan amid broader optimism among Chinese firms on the back of better-than-expected economic data, lifting retail sentiment.

JP Morgan maintains an ‘Overweight’ rating with a $50 price target, Fly.com reported. According to the firm, JD's revenue growth should see a better-than-expected boost from trade-in policies, with more resilient margins thanks to investment discipline, according to the report. 

JP Morgan forecasts JD’s Q4 revenue growth to be about 9.5% year-over-year, beating consensus estimates by 3%, and adjusted net profit projected to grow 13% compared to last year, Investing.com reported.

China’s economic activity exceeded expectations for the last quarter of 2024 with stimulus measures taking effect, providing a boost to several Chinese stocks.

Sentiment on Stocktwits turned ‘bullish’ from ‘neutral’ last week. Message volumes were in the ‘normal’ category.

https://stocktwits.com/ProphetMargins/message/600715614

Separately, Citi analyst Alicia Yap also placed the company on a "90-day positive catalyst watch" with a ‘Buy’ rating with a $51 price target. The view was based on the continuation of the company’s national trade-in programs for 2025 in major provinces like Hubei, Jiangsu and Hunan, among others, the Fly.com reported.

According to the report, JD.com’s early mover positioning in trade-in programs should support potentially stronger-than-expected merchandise volume and revenue growth in the first half of 2025 with upside risks to consensus estimates.

JD.com also stood second on a recent Stocktwits poll that asked users to pick large-cap Chinese companies they were most optimistic about. About 18% of commenters picked JD.com that came second to Alibaba Holdings, which scored 60%.

JD.com stock is up 12% year-to-date.

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