Morgan Stanley: Raises JD HEALTH (06618) target price to 68.8 Hong Kong dollars, maintains "in line with market" rating.

Morgan Stanley released a research report stating that it has raised the target price of JD Health (06618) from 60 Hong Kong dollars to 68.8 Hong Kong dollars, valuing it based on cash flow discount rate and maintaining a "market perform" rating. Morgan Stanley stated that, taking into account JD Health's performance in the third quarter, it believes the company will benefit from growth in direct sales and service revenue, leading to a 1.4% increase in total revenue forecasts for 2025 to 2027. In addition, with the expansion of drug sales and an increase in advertising revenue, the company's gross profit margin is showing an upward trend. The bank has raised its forecasts for the company's earnings per share by 9%, 13%, and 13% for the period.