Bank of America: JD Logistics (02618) Acquisition of Local Instant Delivery Service Attractively Priced, Sets HK$16 Target
Stock News
Oct 10
Bank of America issued a research report stating that JD LOGISTICS (02618) plans to acquire the local instant delivery service business from JD Group-SW (09618) for approximately $270 million. The bank believes the acquisition price is attractive, as it trades below the 12.8x to 21x projected 2025 P/E ratios of franchise express delivery operators. The acquisition price represents 52% of the $520 million that JD Group paid to privatize Dada Group in June this year. Bank of America maintains a "Buy" rating on JD LOGISTICS with a target price of HK$16. The bank considers JD LOGISTICS' valuation attractive and expects that fourth-quarter net profit may rebound, potentially serving as a catalyst for the stock price.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.