Morgan Stanley: JD.com raises full-year profit forecast, boosting stock price, but food delivery business is a drag.

Morgan Stanley stated that JD.com has raised its revenue and profit growth expectations for 2025 in the group and retail business to double digits, which is positive for the stock price. However, there was no loss guidance provided for the food delivery business, which may lead to further downward adjustment in profit expectations for the remaining time in 2025. Analysts, including Eddy Wang, reported that they expect JD.com's total revenue to grow by 13% year-on-year in 2025. The bank lowered its profit forecasts for JD.com in 2025, 2026, and 2027 by 14%, 7%, and 5% respectively to reflect investments in the food delivery business. They maintained a "neutral" rating and lowered the target price of American Depositary Receipts to $39.