Wall Street Takes Downbeat View on Newly Public e-Commerce Stock

Morgan Stanley had some harsh words for JMIA stock

May 7, 2019 at 3:10 PM
facebook X logo linkedin


While Wall Street has been focused on other recent IPOs such as Lyft (LYFT) and Pinterest (PINS), Nigeria's Jumia Technology AG (NYSE:JMIA) also began trading in the U.S. last month. However, initial reviews on JMIA from analysts have mostly been negative, as we'll detail below.

RBC was the first to weigh in on the e-commerce stock, setting a tepid "sector perform" rating and $40 price target. A couple other firms have weighed in with the equivalent of a "hold" recommendation, as well, but Morgan Stanley has a much more bearish outlook. 

Specifically, analysts there released a note that gave JMIA stock an "underweight" rating and $27 price target, while raising concerns about the fact that only about half of active buyers return to the platform over the next year. Morgan Stanley attributes the low retention rates to the immaturity of the market, and says the shares' current price doesn't reflect the uncertainty around the company.

This note is likely the reason Jumia Technology is trading down 6.8% today at $35.16, on pace for its fourth straight down day. The stock opened for trade at $18.95 back on April 12, and eventually went as high as $49.77 a few days later. The company's market cap currently comes in at $2.7 billion, after bringing in $130.6 million in revenue in 2018.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI