JD.com (JD, Financial) saw its pre-market stock price increase by over 1.4% to $35.87. The rise follows a report from China's Ministry of Commerce detailing that sales from policies like old-for-new programs surpassed 1.3 trillion yuan across various sectors including automotive, semiconductor, home appliances, and home decor.
Citi analysts highlighted JD.com's strong start in 2025, thanks to its collaboration with major provinces like Hubei, Jiangsu, and Hunan. They believe JD's proactive role in the old-for-new initiative will likely boost its Gross Merchandise Volume (GMV) and revenue growth more than expected during the first half of the year. The firm reiterated its "Buy" rating with a target price of $51, launching a 90-day positive catalyst watch.
UBS also reaffirmed JD.com as its top e-commerce stock choice in mainland China. Entering 2025, extended subsidies and expanded categories for the old-for-new program may alleviate worries about JD's revenue growth. UBS sees room for increased consumer penetration and category reach. They maintain a "Buy" rating with a target price of $64, citing attractive risk-reward, low market expectations, reasonable valuation, and macroeconomic stimulus.
