What happened

Shares of JD.com (JD 0.71%) were gaining today after the Chinese e-commerce stock received a bullish analyst note and as tech stocks rallied broadly on early reports that the omicron variant may not be as severe as feared.

As of 1:53 p.m. ET, the stock was up 4.5%.

A JD.com autonomous delivery vehicle.

Image source: JD.com.

So what

Macquarie said this morning that it resumed coverage on JD.com with an outperform rating and a price target of $112. Analyst Ellie Jiang said the company had "built a strong service moat" through its investments in supply chain and logistics, and expects the company's growth momentum to persist into 2022. Jiang also forecast sustainable 19% annual gross merchandise volume through 2025, showing JD.com should continue to gain market share.

The e-commerce company is coming off a strong third-quarter earnings report with revenue up 25.5% to $33.9 billion, and services revenue jumping 43% to $5.1 billion as it builds momentum in logistics and its third-party marketplace.

The stock also likely benefited from a surge in the Nasdaq, which was up 3% in afternoon trading. The iShares MSCI China ETF was also up nearly 2% in response to newly announced government initiatives to boost growth.

Now what

During a rough year for Chinese stocks, JD.com has fared better than most. The e-commerce company has escaped scrutiny from the government, delivered strong results, and remained popular with investors. Year to date, the stock is still down this year, but has outperformed many of its peers like Alibaba. As Jiang notes, the catalysts are in place for the company to continue delivering strong growth in the coming years.