JD.com stock rises after Stifel resumes coverage with a buy

Shares of JD.com rose 1% in premarket trading Wednesday after analysts at Stifel resumed coverage of the stock with a buy rating. In a note entitled "one big market, two big winners," the analysts, led by Scott Devitt, argued that there's room for both JD.com and Alibaba Group Holding to capture growth in China. Devitt sees growth opportunities stemming from better payment and delivery options, expansion to more rural markets, and better integration between online and offline operations. "JD is the more structured player with controlled logistics and an initial first-party model that has grown into a first-party/third-party hybrid," he wrote. Devitt predicts that JD.com will grow its market share to 18% by the end of 2017, up from about 6% in 2013. "We expect JD to continue to gain share of the retail market it serves for years to come," he added. JD.com shares are up 52% so far this year, compared with a 99% gain for Alibaba's stock and a 19% rise for the S&P 500.

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