JMIA - Morgan Stanley downgrades Jumia Technologies to underweight; stock plummets 9%

Morgan Stanley analyst Luke Holbrook assumed Jumia Technologies (JMIA -9.0%) at Underweight with an $11 price target, down from the Equal Weight the firm's prior analyst assigned to the stock. The price target implies a 10% downside. The African e-commerce market is only 1-2% penetrated, and Jumia has "scarcity value," plus it recently raised cash to make it self-sufficient for the near term, noted Holbrook. More frequently ordered items remains to be seen as heavy investment in marketing and technology is dampening EBITDA margins. Holbrook also cites Jumia's relatively low GMV growth rates compared to emerging market peers. JMIA shares traded lower by 8.88% at $12.42 on the last check Monday.

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Morgan Stanley downgrades Jumia Technologies to underweight; stock plummets 9%