Connect with us

Hi, what are you looking for?

Investing

Jumia stock is far from done rallying yet: analyst says

jumia stock is far from done rallying yet

Jumia Technologies AG (NYSE: JMIA) is rallying on Tuesday after a Benchmark analyst issued a super bullish note in its favour.

Shares of the marketplace, logistics and payments service are up 30% for the day at writing but Fawne Jiang is convinced it’s not done pleasing its shareholders just yet.

Jumia stock is now trading at a year-to-date high.

Jumia stock has upside to $14

Fawne Jiang assumed coverage of Jumia Technologies this morning with a “buy” rating. His $14 price objective suggests a more than 25% upside on top of today’s gain.

The Benchmark analyst is bullish on JMIA shares as he sees the company as well positioned to benefit from the “unmet pent-up demand” in Africa.

Jumia stock does not, however, pay a dividend at writing which makes it unattractive for the income investors.

Watch here: https://www.youtube.com/embed/Z0nqi865VG0?feature=oembed

eCommerce to grow rapidly in Africa

Analyst Fawne Jiang expects a multi-decade eCommerce growth in Africa to be a meaningful tailwind for Jumia Technologies as it’s the leading online marketplace in that region.

The Benchmark expert forecasts eCommerce market in Africa to grow at a compound annualised rate of 20% through 2030. His research note also reads:

JMIA presents a unique investment opportunity with a highly attractive risk/reward bolstered by both organic value creation and an asset recognition longer term.

Jiang expects continued urbanization and mobile-internet expansion to deliver a material boost to Jumia stock as well. Note that shares of the Berlin-headquartered firm traded at a higher of $62 during the pandemic in 2021.

JMIA lost customers in its fiscal Q1

Benchmark analyst Fawne Jiang recommends investing in Jumia Technologies as it’s the “only true pan-African eCommerce operator”.

The company’s logistics and payment services, he added, “promise monetisation optionality down the road and value creation beyond its status quo eCommerce play”.

In early May, JMIA said it ended its first financial quarter with 1.9 million active customers – down about 5.0%. Still, its revenue jumped 19% on a year-over-year basis to $48.9 million. Francis Dufay – the chief executive of Jumia Technologies said at the time:

I am pleased with our progress to date and remain energized about Jumia’s potential for the future. We have proven that with the right team and the right strategy, growth does not require heavy spending.

The New York listed firm also saw its gross merchandise volume increase by 5.0% to $181 million in Q1 while average order value popped some 3.0% versus the same quarter last year. Note that Jumia stock is not a very widely covered one among Wall Street analysts.

The post Jumia stock is far from done rallying yet: analyst says appeared first on Invezz

You May Also Like

Editor's Pick

In Risky Business: Why Insurance Markets Fail and What to Do About It (Yale University Press, 2023), economists Liran Einav (Stanford), Amy Finkelstein (MIT),...

Editor's Pick

If you haven’t been following the “Twitter Files” saga, the gist of it is that the US federal government routinely pressured pre-Musk Twitter, and...

Editor's Pick

On April 23, 1985, the Coca-Cola Company made one of the biggest mistakes in American business history: it changed the formula for Coca-Cola. Outraged...

Editor's Pick

For years the North Korean playbook was obvious to the world. The Democratic People’s Republic of Korea wanted to be the center of attention....



Disclaimer: Questofprogress.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


Copyright © 2023 Questofprogress.com