Nomura: JD's second quarter profits may be dragged down by investments in the food delivery business, lowering the company's target price.

Nomura research report states that JD's investment in the food delivery business may drag down its second quarter performance. Analysts at the firm estimate that the Chinese online retailer's new food delivery business will incur over 10 billion yuan in quarterly losses, leading to a 60% year-on-year decrease in consolidated net profit. These analysts say that even if JD is able to reduce the losses per order, the business may still incur similar losses in the third quarter. Nomura maintains a buy rating on the stock, but lowers its target price for the American depositary receipts from $52.00 to $45.00.