BofA Trims JD.com Price Target Amid Slower Growth Forecasts, Joins DBS in Cautious Stance
JD.com (NASDAQ: JD), a leading Chinese e-commerce and supply chain technology firm listed on U.S. exchanges, faces tempered near-term expectations from Wall Street. Bank of America Securities analyst Joyce Ju maintained a Buy rating on the stock but reduced the price target to $36 from $38, according to a January 26 report.
The adjustment follows a revision of JD's revenue growth estimates for 2025 through 2027, now projected at 13%, 6%, and 8%, respectively. Ju cited increased consumer incentives and ongoing losses in newer initiatives like food delivery as factors pressuring non-GAAP net profit.
This move echoes caution from other institutions. Earlier in January, DBS Group Research also lowered its JD.com price target from $40 to $38, while keeping a Buy rating. The bank pointed to a year-over-year revenue decline in Q4 2025, driven by double-digit drops in electronics and home appliance sales. "We see limited near-term visibility as the national subsidy programme is likely weaker than FY25 in both scale and scope," DBS noted in its commentary, also slashing its retail growth and adjusted earnings forecasts for the coming years.
Despite the trimmed targets, both banks highlight JD's undemanding valuation, with DBS applying a forward P/E multiple of 12. The company, which operates retail, logistics, and new business segments, remains a core holding in the China consumer tech space, though analysts now signal a bumpier growth path ahead.
Market Voices
Michael Chen, Portfolio Manager at Horizon Capital: "This is a prudent, data-driven adjustment. The slowdown in big-ticket item sales was anticipated given the macro environment. JD's logistics moat and balance sheet strength make this a hold, not a sell."
Sarah Wilkins, Independent Retail Analyst: "It's more than just a trim—it's a signal. When two major banks cut targets in quick succession, it reflects deep-seated concerns about JD's ability to reignite growth beyond its core. Their new ventures are burning cash without clear payoff."
David Li, Long-term Investor: "I'm frustrated. This feels like short-term noise overshadowing a long-term powerhouse. The market is punishing JD for investing in its future logistics and grocery networks. These cuts seem reactive."
Priya Sharma, Fintech Strategist: "The revised estimates realistically capture the headwinds. The key for JD now is demonstrating efficiency gains in its new businesses to justify the investments. The current valuation does offer a margin of safety."