JPMorgan Chase raises rating of JD.com to neutral, optimistic about its profit potential growth.

After suspending coverage for a period of time, J.P. Morgan has resumed research coverage of JD.com and has assigned it a rating of "overweight," stating that the performance of this Chinese e-commerce company may exceed market expectations. Analysts, including Andre Chang, wrote in their report that unlike many other companies facing downward profit risks this year, JD.com is expected to deliver better-than-expected performance as the most aggressive investment phase in the instant retail sector comes to an end. The company's core business has shown greater resilience than market concerns and its competitiveness remains solid. Investments in the offshore e-commerce platform JoyBuy appear to be "cautious," while competition in the food delivery sector is cooling down under regulatory pressure. The new price target is set at $38 for US stocks and 148 Hong Kong dollars for Hong Kong stocks. In addition, Morgan Stanley has also upgraded JD.com's rating from neutral to outperform.