Morgan Stanley has issued a research report upgrading JD Logistics (02618) from "Equal-weight" to "Overweight." The firm also raised its earnings per share forecasts for 2026 and 2027 by 11% and 15%, respectively, and increased the target price from HK$12.8 to HK$16.2. The report noted that JD Logistics' strong performance growth in 2026 is partly due to a low base effect, but emphasized that the trajectory of profit margins is the primary driver of the company's valuation. With margins expected to return to an expansion path in 2026, the firm anticipates that earnings per share growth and valuation re-rating will create upside potential. At its current price, JD Logistics is trading at a forward price-to-earnings ratio of 8 times for 2026, which remains at a discount compared to peers even after recent share price gains.