Morgan Stanley names JD.com a ‘Research Tactical Idea,’ sees shares falling

Morgan Stanley named JD.com as a “Research Tactical Idea,” as the firm believes the share price will fall in absolute terms over the next 30 days. JD announced that it repurchased a total of 43.8M ADS for $1.2B in March and the firm calculates that JD’s share repurchase amount accounted for about 11% of JD’s trading volume during the period of March 8-31, supporting its share price outperformance. However, since JD is currently in a blackout period prior to Q1 results due in mid-May, it cannot repurchase shares, the analyst tells investors. The firm has an Equal Weight rating and $27 price target on JD.com shares.