JD shares hit record low, banks cut Q3 growth target on retail slowdown
JD fell as much as 13% to a record low on Friday after several banks and brokers cut price targets and revenue growth forecasts for the firm, citing a weaker-than-expected recovery in consumer spending.
The brokerages and banks including Citi, Daiwa and Jefferies, which issued notes to clients on Thursday and Friday with the revised estimates.
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Shares in JD, which is also China's largest home appliance retailer, closed at their lowest level since their June 2020 debut.
US-listed shares of JD fell 4.5% in premarket trading and rival PDD Holdings declined 1.9%.
A debt crisis in the key property sector has contributed to slowing China's economic growth after the pandemic, while many Chinese have cut back on spending due to concerns over the economy and job security, hurting the retail sector.
In March, JD warned it would take time to rebuild consumer confidence post-pandemic as it missed fourth-quarter revenue forecasts.
Citi Research lowered its revenue assumption for JD by 3.4% and 4.3% for the third and fourth quarter, saying that it now estimates 0.8% and 1.3% growth respectively.
The bank's analysts cited a «relatively muted consumption trend, high base, intense competition, and
