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Chinese e-commerce giant JD.com (JD) is jumping 9% today. The shares are rallying after investment bank Jefferies increased its price target on the name to $60 from $54.
Why Jefferies Raised Its Price Target
Jefferies analyst Thomas Chong, who kept a Buy rating on JD.com, believes that the company was well-managed last quarter. Among the positive catalysts for the Chinese company in Q4 were its Double-11 discounts and trade-ins, the analyst stated.
Chong increased his estimates for JD.com, citing its revenue from JD Retail and its segment operating margin, both of which came in ahead of expectations.
JD Launches Gift Option
Following in the footsteps of Alibaba (BABA) and Tencent (TCEHY), JD.com earlier today introduced a gifting feature on its mobile app. Specifically, users will be able to press a button that allows them to pay for and then send products to one or more recipients.
Tencent launched a similar option in December and Alibaba followed suit earlier this month.
More About JD Stock
Analysts, on average, expect the company's earnings per share to climb to 31.74 Chinese yuan this year, up from 29.2 Chinese yuan in 2024.
In the last month, the shares are up 8%, but they are down 3.5% in the last three months.
While we acknowledge the potential of JD, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. This article is originally published at Insider Monkey.