Jumia Technologies price target lowered to $11 from $14 at Benchmark

Benchmark analyst Fawne Jiang lowered the firm’s price target on Jumia Technologies to $11 from $14 and keeps a Buy rating on the shares. The stock plummeted by more than 50% yesterday following the company’s Q2 results and the firm attributes the strong stock reaction to the surprising announcement of an equity raise. While the firm thinks the market is dubious about the timing and the level of the raise, which the firm views as “premature” considering Jumia’s improving cash cycle and its heathy liquidity position, Benchmark believes investors should not lose sight of the potential benefit of having greater financial resources to capture growth opportunities.