As previously reported last night, Loop Capital downgraded JD.com (JD) to Hold from Buy with a price target of $49, down from $82. While the stock looks undervalued with potential for meaningful upside over the long-term, conditions for valuation unlock in the near-term are no longer in place as competitive concerns remain high and "not likely to ease" as JD’s historic partner and investor Tencent (TCEHY) is moving down-funnel to directly enable ecommerce transactions, the analyst tells investors in a research note. Loop adds that the demand for Chinese equities remains low and other vehicles will likely appear more attractive to global investors over the near-term.
Published first on TheFly
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