DADA Makes Top 500 Private Enterprises List; Street is Bullish

China’s leading local on-demand delivery and retail platform, Dada Group, has been ranked 211th on the Hurun Research Institute’s “China’s Top 500 Private Enterprises in 2020” list, based on market value.

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Dada’s (DADA) business model and omni-channel digital platform allows retailers, brand owners and users to grow their online traffic by cutting costs and enhancing efficiency through its Haibo system. The company’s growth comes as a result of its partnerships with retailers and brand owners and continuous innovation in brand marketing. Dada has expanded its product offering and grown its coverage of intra-city retail.

“We are pleased to have been included on Hurun’s list and believe it demonstrates the significant advantages of Dada’s on-demand retail and delivery platforms,” said Philip Kuai, Founder, Chairman and Chief Executive Officer of Dada Group.

Dada’s Q3 results, which were reported in November, beat analyst expectations, with Q3 earnings showing a year-on-year increase of 86%. Dada has been recognized for its strong performance by investment institutions worldwide and optimism around Dada’s future growth expectations has led to many of these institutions raising their price targets for the company. (See DADA stock analysis on TipRanks)

Last month, Goldman Sachs analyst Ronald Keung upgraded his rating on Dada shares from a Hold to a Buy and raised his price target from $28.50 to $36. This suggests that Dada shares are fully priced at current levels.

Keung believes that current economic trends are working in Dada’s favor, with the adoption of online shopping platforms around the world being accelerated by the coronavirus pandemic.

Overall, consensus among analysts is a Strong Buy based on 3 Buys and 1 Hold. The average price target of $39 implies upside potential of around 9% over the next 12 months.

DADA shares have almost doubled in price since listing on the Nasdaq in June of this year.