JD.com: Upgrading To Buy On Government Subsidy Tailwinds Driving Growth

Mar. 11, 2025 5:10 AM ETJD.com, Inc. (JD) StockJD1 Comment
Astrada Advisors
1K Followers
(7min)

Summary

  • We are upgrading JD.com stock to Buy from Sell due to strong 4Q24 results and government consumption subsidies boosting revenue growth, especially in electronics and home appliances.
  • Valuing JD at $56/share based on 8x forward EV/EBITDA multiple, reflecting its above-industry revenue growth and favorable macro policy support.
  • Government subsidies are expected to continue, benefiting JD's large-ticket items; Xiaomi also seen as a potential beneficiary in non-smartphone segments.
  • Risks include potential economic weakness impacting consumption and higher costs from JD's on-demand services expansion, but the subsidy-driven narrative remains strong for 2025.

Hispanic couple shopping for refrigerator

Ariel Skelley/DigitalVision via Getty Images

We are upgrading JD.com (NASDAQ:JD) to Buy from our previous Sell rating based on the strong 4Q24 results. The strong operating and financial metrics indicate that JD remains a key beneficiary of the government’s

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Astrada Advisors delivers actionable recommendations that enhance portfolio performance and uncover alpha opportunities, supported by a strong track record in investment research at leading global investment banks. With expertise spanning technology, media, internet, and consumer sectors in North America and Asia, Astrada Advisors excels in identifying high-potential investments and navigating complex industries.Leveraging extensive local and global experience, Astrada Advisors offers a unique perspective on market developments, regulatory changes, and emerging risks. The research integrates rigorous fundamental analysis with data-driven insights, providing a nuanced understanding of key trends, growth drivers, and competitive landscapes.The focus is empowering investors with timely research and a comprehensive view of industry dynamics. Whether navigating volatile markets or exploring new trends, Astrada Advisors remains committed to delivering superior insights to drive informed investment decisions.

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