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Time To Buy JD.Com Inc(ADR) (NASDAQ:JD)?

Boston, MA 07/02/2014 (wallstreetpr) – If the sentiments of prominent rating firms covering the stock of JD.Com Inc (ADR) (NASDAQ:JD) is anything to consider, investors have a wonderful opportunity investing in the stock.

The company provides online direct sales and competes with Alibaba, which is preparing for IPO in the U.S. JD.Com (NASDAQ:JD) performed IPO in May, and the stock has not looked back since the offering.

According to consensus ratings, the stock carries a Buy recommendation and an average price target of $34.69 per share. The stock currently trades around $29 per share.

 Big names boost confidence

The initiation of coverage of JD.Com Inc (ADR) (NASDAQ:JD) by Barclays, Jefferies Group, Piper Jaffray Cos. and Cowen & Co. have had far-reaching positive impact on the stock. For example, Barclays and Jefferies Group initiated the stock with a Buy as they express optimism in the online retail business, especially with Asia-linked companies because of the anticipated robust growth of the industry in China.

The company carries a Hold rating from Piper Jaffray Cos. and Cowen & Co.

The stock has surged more than 56 percent since its IPO in May.

JD.Com Inc (ADR) (NASDAQ:JD) is the second-largest online retailer in Asia by market value. Its IPO ahead of Alibaba has also delivered positive developments for the company.

Partnership with Tencent

JD.Com Inc (ADR) (NASDAQ:JD) is in a partnership with Tencent Holdings Ltd, which is the biggest Internet company in China. The deal is expected to support rapid growth of JD as well as enabling it to face reduced operating costs in terms of Internet acquisition.

Investor takeaway

JD.Com Inc (ADR) (NASDAQ:JD) is among the e-commerce companies with big Chinese exposure, and that makes it an interesting pick for investors with a long-term outlook in the rapidly growing online retail business.

With the widespread opportunities in the online retail industry and the widely positive analyst sentiments on the stock of JD.Com Inc (ADR) (NASDAQ:JD), investors are better off adding it to their investment portfolio.

Published by Duncan Oleinic

Duncan Oleinic is from New Yourk. After graduating with a degree in physics, he began his career as an analyst in a broking firm. Through this experience he was able to advance to the role of correspondent for a U.S based financial news provider, where he worked from 2001 to 2007. He subsequently joined a merchant banking firm as a financial analyst focused on valuing unlisted companies in the sub-continent. Over the course of his two years here, he performed valuations of several media companies which were later acquired by peers.

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