JMIA - Jumia Technologies: Improving Growth Prospects Could Drive The Stock Higher
2024-05-08 07:30:00 ET
Summary
- Jumia Technologies is on its way to building a sustainable business after a change in management, but the company still needs to prove it can generate profitable growth.
- High inflation rates, currency depreciation, and scarcity of supply in core markets are negatively impacting Jumia's business.
- A more stable macro environment should be supportive of JMIA's business going forward.
- I believe Jumia is fairly valued given the risks involved, but the stock could move higher if the company's fundamentals continue to improve, particularly if growth picks up.
Jumia Technologies ( JMIA ) has historically been a divisive stock due to the "Amazon of Africa narrative" and the extremely poor fundamentals of the business. I long felt that the company had poor prospects due to its limited financial resources and pursuit of growth at all costs. After a change in management, the company is on its way to building a sustainable business, although it still needs to prove that it can generate profitable growth....
Jumia Technologies: Improving Growth Prospects Could Drive The Stock Higher