[ET Net News Agency, 22 February 2021] J.P. Morgan lifted its target price for XD Inc.
(02400) to HK$42 from HK$38 as it rolled forward the valuation base to 2022 but downgraded
its rating to "underweight" from "neutral".
The research house believes XD's 102% share price rally year-to-date is due mainly to
investors' rosy expectations on Taptap to become a major game channel in China. JPM
believes such expectations are already (more than) factored into the current valuation.
It noted that XD is trading at 48x 2022 P/E, much higher than Tencent's (00700) 32x, and
NetEase's (09999) 25x. (KL)