JD.Com's Organizational Restructuring May Bring Short-Term Disruptions, Says Analyst

Benchmark analyst Fawne Jiang reiterated a Buy on JD.Com, Inc JD, lowering the price target to $68.
The analyst believes that the company's business adjustments and a major organizational restructuring provide limited visibility for the coming quarters. These may cause short-term disruptions in the company's operations.
The analyst expects FY23 to be a transitional year for JD, heavily overweighed on big-ticket items. For JD, macro and muted housing markets continue to pressure big-ticket items, including the home appliance category, and growth remains challenging upon the "return to office normalcy" headwinds.
As such, Fawne reduced FY23 revenue to RMB1.06 trillion from RMB1.14 trillion prior and FY23 non-GAAP EPADS to $2.56 from $2.69.
However, the analyst thinks JD's organizational structure gives each business unit the autonomy to respond to the fast-changing market dynamics and boost the company's fundamental competitiveness in the longer term.
Also Read: JD.Com's Business Units Prepares For Separate Hong Kong IPOs Days After Alibaba's Similar Move
Price Action: JD shares traded lower by 6.20% at $37.53 on the last check Wednesday.

Momentum95.47

Growth93.47

Quality68.83

Value93.23

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