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JD.com has finished its purchase of about 60 percent of CECONOMY, a large European electronics retailer, for roughly 1.3 billion euros. This move turns the German-based firm into a subsidiary, giving the Chinese e-commerce giant a major physical footprint in Europe.
This is a significant step in JD's plan to grow outside of China. By owning a majority of an established retailer, JD can plug its own advanced logistics and supply chain systems into a new market. For long-term owners, this helps reduce the company's reliance on the Chinese consumer economy, which has been slow to recover lately.
Source: GlobeNewsWire
The company is scheduled to share its latest financial results on November 17. Analysts expect earnings of about 88 cents per share on revenue of roughly 46.1 billion dollars. This report will be an important look at how well the company's low-price strategy is working to attract shoppers in a difficult Chinese economy. We will be watching to see if the company can maintain its profit margins while spending more on discounts and faster delivery to compete with rivals.
The company is set to report its latest quarterly results on November 12. Analysts are looking for about 46 billion dollars in revenue, which will provide a fresh look at how well its push for lower prices is attracting shoppers in a tough Chinese economy. Beyond the headline numbers, the focus will be on whether the company is growing its user base without hurting its profit margins. This report is also a chance to see if the logistics business, which handles shipping and warehouses, is continuing to win more work from outside customers.
Barclays lowered its price target for the company from $41 to $38 while keeping an overweight rating, which is a sign they still expect the stock to perform well. This move follows a similar target cut from UBS earlier in the month. Even with the lower target, analysts remain generally positive on the stock with an average target of $35. That is well above the current price of about $27, suggesting that most firms believe the company is currently undervalued by the market.
Source: Barclays
UBS set its price target for the company at $37 on Tuesday. This is very close to the $36 average target held by other analysts who follow the stock. At the current price of about $27, most analysts still see room for the stock to rise. While target changes are routine, they reflect how Wall Street is weighing the company's massive logistics network against a slow recovery in Chinese consumer spending. This new target suggests UBS expects the business to grow more valuable as it expands its shipping services to outside merchants.
Source: UBS
Management has cleared its own profit targets for eight straight quarters. This shows they have a firm grip on costs even while revenue growth stays in the low single digits.
| Expectation | |
|---|---|
| EPS | $0.88 |
| Revenue | $46.04B |