On Thursday, Jefferies updated its outlook on JD (NASDAQ:JD) Logistics Inc (2618:HK) (OTC: JDLGF), increasing the price target to HK$11.20 from the previous HK$9.70, while reaffirming a Buy rating for the company's stock. The revision follows JD Logistics' first-quarter results, which surpassed both consensus and the firm's own forecasts for revenue and non-IFRS earnings.
The company's management emphasized the importance of scale, customer experience, and efficiencies. Notably, JD Logistics has seen a resurgence in the number of external customers, with both quarter-over-quarter and year-over-year growth recorded in the quarter. This trend is anticipated to carry forward, with expectations set for continued positive momentum in customer growth into the second quarter.
The firm remains confident in JD Logistics' revenue growth trajectory for the full year and anticipates that the narrative of margin expansion will hold true. The positive first-quarter performance and the subsequent expectations for the coming periods have contributed to the firm's decision to maintain its Buy rating on the stock.
The report indicates that JD Logistics' strategic focus areas are yielding tangible results, as demonstrated by the recent uptick in customer numbers. The company's ability to exceed financial expectations suggests that its operational improvements and market strategies are effectively aligning with the company's growth objectives.
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