Citi Affirms Buy Rating on JD.com, Citing Clear Profitability Enhancement Path

Deep News04-02

Citi analysts stated in a report that JD.com's pathway to improving profitability is clear if management reduces investments in its unprofitable food delivery segment. They forecast that losses in 2026 will be smaller than those in 2025, thanks to enhancements in user experience and more efficient promotional activities. The analysts added that JD.com's extensive supply chain provides a strong and defensible moat against potential disruptions from AI agent-driven business models. Management's commitment to rewarding shareholders through share buybacks and dividend distributions should also support its valuation. Citi maintained a Buy rating on JD.com's American Depositary Receipts (ADR) with a $35.00 price target, citing its reasonable valuation and strong free cash flow yield.

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