US Tiger Securities lowered the price target on JD.com, Inc. (NASDAQ: JD) to $35.00 from $40.00 while maintaining a Buy rating, citing signs of softening consumer demand in China, particularly in home appliances.
The analyst said recent data from China’s National Bureau of Statistics pointed to slowing consumption momentum. Total retail sales growth decelerated to 2.9% year over year in October and 1.3% in November, down from 3.0% and 3.4% growth in September and August, respectively. The household appliance category, a key contributor to JD’s revenue and profitability, declined sharply by 14.6% and 19.4% year over year in October and November, compared with 3.3% growth in September.
The weakness was attributed largely to a tough comparison following the rollout of a national subsidy program in the fourth quarter of 2024. As a result, the analyst revised assumptions for the fourth quarter, now modeling a 19% year-over-year decline in JD’s electronics and home appliance revenue versus a prior forecast for a 3% decline. This adjustment translated into an estimated 11% reduction in net product sales revenue and a 9% cut to total revenue relative to previous estimates.
