Jumia Technologies initiated with a Sector Perform at RBC Capital

RBC Capital initiated coverage of Jumia Technologies (JMIA) with a Sector Perform rating and $5 price target Jumia is the largest pan-African e-commerce vendor with an attractive combination of an underpenetrated end market with a leading brand, asset-light vertical integration and growing moat with potential longer-term optionality, the analyst tells investors in a research note. However, the firm says it would like to get more constructive as it seeks better visibility on a faster path to profitability. Newer management is rebuilding a more sustainable cost structure which will take some time, says RBC.