JD.com Stock (NASDAQ:JD) Gains: Price Target Cut, as Citi Remain Bullish

JD.com’s stock (NASDAQ:JD) is 3% higher in early trading on the NASDAQ, even as several financial firms lowered their price targets for the e-commerce giant. The contrasting movement reflects a complex interplay of market sentiment, strategic initiatives, and concerns over near-term performance.

Citi Cuts Price Target, Remains Bullish

Despite the positive price action, Citi lowered its price target on JD.com from $44 to $37, while maintaining a Buy rating. The adjustment reflects concerns about a “steepening decline” in home appliance sales, with expectations that December sales figures will weaken relative to November. Citi suggests limited catalysts for the shares in the near term, anticipating downward revisions to consensus estimates for Q4 2025 and fiscal year 2026.

The market’s positive reaction to JD.com’s stock, despite Citi’s downgrade, may indicate confidence in the company’s broader growth prospects and strategic initiatives, potentially outweighing concerns about short-term sales fluctuations in specific sectors. However, Citi is not alone in their revised outlook.

Morgan Stanley

Morgan Stanley also reduced its price target, moving from $41 to $39, while maintaining an Equal-weight rating. Their concern centers on the lack of explicit guidance for JD.com’s burgeoning food delivery business, suggesting potential losses that could pressure future earnings estimates and trigger further downgrades.

HSBC & Benchmark

HSBC also joined the trend, lowering its price target to $37 from $39, similarly pointing to softening sales trends in the home appliance segment. The firm projects a 3% year-over-year decline in JD Retail’s overall revenue growth for Q4 2025, a significant deceleration from the 16.63% growth rate achieved in the last twelve months. Benchmark followed suit, reducing its price target to $38 from $42, while retaining a Buy rating. Benchmark cited difficult year-on-year comparisons in the 3C (computers, communication, and consumer electronics) and home appliances categories as headwinds for the company as it moves into Q4 2025 and fiscal year 2026.

UBS

JD.com’s diversification strategy, particularly its expansion into food delivery, presents both opportunities and challenges. While this venture has the potential to unlock long-term growth, it also entails significant investments and associated costs. UBS lowered its price target to $50 from $58, citing increased investments in food delivery that have not been fully factored into market expectations.

The contrasting signals of analyst downgrades and positive market reaction highlight the complexities facing JD.com. While investors may be drawn to the company’s long-term growth potential and strategic positioning, the downward revisions in price targets reflect legitimate concerns about short-term challenges, particularly in key sectors like home appliances, and the financial implications of new, investment-heavy ventures.