Jumia Technologies (NYSE:JMIA) shares rose 20% on Tuesday, after Benchmark started coverage with a Buy rating and said the company is well positioned to capture the unmet pend-up demand in the African market.
Benchmark said as a leading African ecommerce platform, the company is poised to benefit from a demographic transformation set to catalyze multi-year and potentially multi-decade ecommerce growth in the region.
The brokerage set a PT of $14 on the stock, implying an upside of over 60% to last close.
The company was trading at $10.15 in the morning. Overall, it has doubled in value so far this year.
“JMIA presents a unique investment opportunity with a highly attractive risk/reward bolstered by both organic value creation and an asset recognition longer term,” said Benchmark analyst Fawne Jiang, adding that Africa’s ecommerce market is projected to grow at 20% CAGR through 2030, notably outpacing other regions.
Jiang said with an established track record and proven model, Jumia presents investors with a “unique investment opportunity” to participate in Africa’s fast-growing digital consumption of online retail growth.
Seeking Alpha analyst, Wall Street and Seeking Alpha’s Quant ratings are all cautious and consider the company a Hold.