Opinions
Kim Bolton
JD.com Inc
JD-Q
TOP PICK
Nov 24, 2020
Stock price when the opinion was issued
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Stockchase Research Editor: Michael O'Reilly An e-commerce business in the country with the largest population on the planet. They are the second largest e-commerce company in China. Revenues were up 34% in Q2 hitting $9.1 billion. They have a strong logistics network and also offer cloud business and digital healthcare. The company is also forming strong partnerships, including Chinese based Tencent and Walmart. Barclay's just upgraded the stock to an $83 target. The stock had a great runup on the recent earnings report, so we would look to buy on a pullback towards $73. Yield 0%
China e-commerce space, second largest after BABA according to market cap. Don't sell at this stage. Regulatory and political risk has pushed stocks down, plus move away from growth to value. Tremendous long runway for growth. Growing middle class, urbanization. Kind of pricey, but 30% earnings growth rate.
Yesterday, China did a smart thing by cutting their federal funds rate by 50 basis points. This is gigantic and has impact, by making their economy--and stocks--stronger. Also, he suggests they reign in their real estate industry. China has to do something to revive its economy. Also, both US candidates in this election year will bash China. Given all this, he's changed his mind about Chinese stocks and recommends Baidu, Alibaba, Pinduoduo and JD.com. They are very cheap and are real businesses. Also, they are recognized internationally. No, he won't buy them, because he doesn't trade, but if he did trade, he would.
Chinese online retailer. Like Amazon, because they have their own branded products. Heavily invested in drone delivery. Scale advantage, clear margin expansion profile, growing valuation of subsidiaries. His price target is $101. Suggests buying in stages at $87, $72, and $60. No dividend. (Analysts’ price target is $99.01)