While Walmart’s decision is clearly a short-term negative, JD.com doesn’t currently benefit much from its relationship with the retailer for its core e-commerce business, JPMorgan analysts led by Andre Chang wrote in a note Thursday.
Low valuations and investor positioning provide “a good setting for share price outperformance”, especially as JD.com’s trade-in policy for home appliances should improve revenue growth in the second half, the analysts said.
JPMorgan had upgraded the Chinese tech firm to overweight just last Friday. Investors responded to that upgrade by saying they prefer Alibaba Group Holdings and PDD Holdings shares for longer-term investment, the analysts said.
