BofA remains cautiously optimistic on JD.com as China re-opens
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Bank of America remains cautiously optimistic about a gradual recovery amidst a re-opening in China for JD.com (NASDAQ:JD).
In BofAâs Innovative Conference, JD specified that its logistics and supply chain capacity has witnessed positive developments recently, after having a roller coaster couple of months due to lockdowns in Shanghai and across China.
According to a BofA note: âThe capacity in Shanghai and its nearby region saw its low in Apr, rebounded to about 80% in the 1st week of May, came down again in the 3rd week of May, and then went back up to over 80% recently.â
JD expects to return to full capacity during the month of June.
BofA also noted that JD sees a recovery and some pent-up demand. JD also anticipates that there will be a product shift away from supermarket items and, to a lesser extent, PC devices, to discretionary categories like apparel. Additionally, the firm expects demand for home appliances to be broadly resilient.
Bank of America maintains its Buy rating on JD with a target of $76. At the moment, JD closed Tuesdayâs session at $56.12 and finds itself lower on the year by 15.8%. Furthermore, in premarket trading JD.com is +1.1%.
JD.com and other related China-centered stocks and ETFs have started the week off on the right foot as news that lockdowns across Shanghai have begun to eased.