Goldman Sachs maintains a "Buy" rating on JD.com, with a target price lowered to 169 yuan

Goldman Sachs published a research report indicating that JD-SW (09618.HK) achieved a year-on-year revenue growth of 15% in the third quarter, which is solid, with the retail business profit margin reaching a record high of 5.9%. However, the stock price performance has been weak, possibly reflecting investors' concerns about the high base in the home appliance category and the company's aggressive investment strategy in new growth areas such as delivery, Jingxi, and international business.

Goldman Sachs currently expects JD's revenue growth in the fourth quarter to slow to 2%, with profits nearing breakeven, and the retail profit margin declining by 61 basis points year-on-year due to increased user subsidies. Although revenue growth is normalizing and short-term profits are affected by new business investments, the firm still believes that JD's retail performance is robust and can provide upside potential for long-term shareholder returns. They have lowered JD's earnings forecast for 2026 to 2027 by 30% to 11%, reduced the target price from 174 yuan to 169 yuan, and cut the target price for US stocks (JD.US) from $45 to $43, maintaining a "Buy" rating. The firm also maintains a "Buy" rating and target price of 17.7 yuan for JD Logistics (02618.HK)