On Thursday, JPMorgan (NYSE:JPM) reiterated its Neutral rating and $28.00 price target for JD.com, Inc (NASDAQ: NASDAQ:JD), following the company's first-quarter earnings report. The e-commerce giant reported a total earnings increase of 18% year-over-year, surpassing JPMorgan's and consensus estimates by 25% and 21%, respectively. This performance is anticipated to lead to a mildly positive reaction in JD.com's share price.
JD.com's revenue growth stood at 7% year-over-year, which was slightly above JPMorgan's and consensus projections by one percentage point. Despite this, the figure reportedly fell short of some buy-side investors' expectations. These insights were derived from JPMorgan's discussions with certain investors, which suggested a mixed reception to the revenue growth figure.
The firm also commented on the performance of JD Retail, the company's retail division. Although specific figures were not disclosed in the context, the mention suggests that there were notable points regarding JD Retail's operating profit. These details contribute to the overall assessment of JD.com's financial health and performance in the first quarter of 2024.
The financial institution's stance on JD.com remains unchanged despite the better-than-expected earnings. The Neutral rating indicates that JPMorgan's outlook on the stock is neither bullish nor bearish at the current price target. Investors are likely to consider these insights as they assess JD.com's market position following the release of its first-quarter earnings.
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