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1millionmegaways| Big Bank Rating| UBS: JD accelerates repurchase to release value and gives it a "buy" rating and target price of US$37

Home 2024年04月19日 13:02 17 editor

UBS issued a report pointing out1millionmegawaysJD.com disclosed last night (18th) that the total amount of shares repurchased in the first quarter was 1.2 billion US dollars, equivalent to about 2 percent of the total number of common shares outstanding as of the end of December last year.1millionmegaways.8%, far more than expected. In annualized terms, it is equivalent to a yield of about 12%. The Group implemented a total of US $2.1 billion in its repurchase plan from March 2021 to March this year, and the new plan also implemented US $500 million. The bank believes that although JD.com 's future buyback pace may change, it is believed to be sustainable with its strong cash position and free cash flow. Despite JD.com 's strong cash position (about 50-60 per cent of market capitalisation) and higher-than-expected gross margins over the past few years, the group's valuation multiple has been under pressure and the bank believes that investors have not paid much attention to its cash balance either because of previous shareholders' low returns. But yesterday's announcement should send a strong message and commitment to the market, thereby releasing the value of the shares. In addition, the bank believes that this year is the implementation of JD.com, user investment and business ecology will still be the focus. Given the group's strong free cash flow (the bank forecasts $7 billion in fiscal 2024), there is room to accelerate the pace of buybacks and shareholder returns. The bank gave JD.com a "buy" rating on U. S. stocks, with a target price of $37.

1millionmegaways| Big Bank Rating| UBS: JD accelerates repurchase to release value and gives it a "buy" rating and target price of US

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