Jumia Technologies Stock Jumped 21% Today After A Major Wall Street Upgrade – Check Out The New Price Target
Synopsis
RBC upgraded the stock to ‘Outperform’ from ‘Sector Perform’ and lifted the price target to $15 from $6.50, citing improved supply conditions and weakening currency pressures.
Jumia Technologies AG (JMIA) received a major upgrade from RBC Capital Markets after meetings with company leadership, which boosted confidence in its outlook.
RBC upgraded the stock to ‘Outperform’ from ‘Sector Perform’ and lifted the price target to $15 from $6.50, citing improved supply conditions and weakening currency pressures as key positives, according to Thefly.
Jumia Technologies' stock traded over 21% higher by Tuesday afternoon. On Stocktwits, retail sentiment around the stock jumped to ‘extremely bullish’ from ‘bullish’ territory the previous day. Message volume improved to ‘extremely high’ from ‘high’ levels in 24 hours.
The stock experienced a 775% increase in user message count over 24 hours, as of Tuesday morning.
A Stocktwits user commended the stock’s gain since June.
RBC’s bullish stance follows virtual meetings with Jumia’s CEO and CFO, where management appeared “incrementally positive” about the company’s ability to benefit from easing foreign exchange headwinds.
The firm believes there’s room for upside as Jumia scales its operations with supply expansion and a boost in order growth. RBC expects Jumia to strengthen its relationships and gain momentum with Chinese suppliers.
Jumia is one of Africa’s top e-commerce platforms. It runs its own delivery network, called Jumia Logistics, and offers digital payments through JumiaPay.
The company’s second-quarter (Q2) revenue of $45.6 million exceeded the analyst consensus estimate of $44.8 million, according to Fiscal AI data. The Gross Merchandise Value (GMV) for Q2 rose 6% year-over-year to $180.2 million.
Jumia Technologies’ stock has gained over 213% year-to-date and over 161% in the last 12 months.
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