Bank of America: JD Logistics' acquisition of local instant delivery service has attractive pricing. Target price of 16 Hong Kong dollars.

Bank of America released a research report stating that JD Logistics plans to acquire JD-SW's local instant delivery services business for approximately $270 million. The bank believes that the acquisition price is attractive because it is lower than the 12.8 to 21 times forecasted P/E ratio of franchise courier operators in 2025. The acquisition price is equivalent to JD Group's 52% privatization of Dada Group for $520 million in June this year. Bank of America maintains a "buy" rating on JD Logistics with a target price of HK$16. The bank believes that JD Logistics' valuation is attractive and expects a rebound in net profit in the fourth quarter, which could be a catalyst for the stock price.