Shares of JD.com (NASDAQ:JD) jumped 10.6% on Tuesday following bullish analyst commentary.
Stifel analyst Scott Devitt raised his rating on JD.com's stock from hold to buy and boosted his price forecast from $84 to $105. His new estimate suggests the Chinese e-commerce leader's shares could rise another 10% from their current price of $95.49.
As China's largest online retailer by revenue, JD.com stands to profit from the growth of the country's massive e-commerce market. Additionally, Devitt sees opportunities for JD.com to cash in on its stakes in other rapidly growing businesses, such as fintech company JD Digits, which hopes to raise $3.1 billion in an upcoming initial public offering (IPO) on the Shanghai Stock Exchange.
In addition to its JD Digits stake, JD.com also owns roughly 67% of JD Health, which completed a successful IPO in Hong Kong in December. JD Health provides telehealth services and operates an e-commerce platform for pharmaceutical products.
JD.com is also reportedly considering a spinoff of its highly regarded logistics operations. JD Logistics could raise as much as $10 billion in an IPO, according to Reuters, which would value the company at approximately $30 billion.
These holdings help to boost the value of JD.com's stock, and they give investors more ways to win in the years ahead.