Jumia Stock Soars 21% on RBC Upgrade, Target More Than Doubled
Analyst points to easing currency pressures and supply chain gains as key catalysts for the African e-commerce leader.
Shares of Jumia Technologies (NYSE: JMIA), the African e-commerce platform, surged more than 21% on Tuesday after a major Wall Street upgrade. from 'Sector Perform' and more than doubled its price target to $15.00 from a previous $6.50, signaling renewed confidence in the company's growth trajectory.
The bullish revision sent Jumia's stock to a new 52-week high, touching $12.37 during intraday trading. The upgrade follows recent meetings between RBC analysts and Jumia's management, which reinforced the view that the company is overcoming significant macroeconomic headwinds. Analyst Brad Erickson cited easing foreign exchange (FX) pressures across Jumia's key African markets as a primary driver for the optimistic outlook.
According to the RBC note, currency stability is having a direct, positive impact on the company's supply chain. ',' which is expected to pave the way for accelerated order growth. This stability has also reportedly improved relationships with Chinese suppliers, who are increasingly looking for new markets amid ongoing trade tensions with the United States.
The market's reaction was swift and decisive, reflecting a significant shift in investor sentiment. The upgrade triggered a massive spike in social media discussion, with . RBC Capital admitted it had previously 'underappreciated the magnitude of the headwinds' Jumia faced from currency volatility, suggesting that the current stability could unlock considerable upside for investors.