Jumia Technologies AG (NYSE:JMIA), often dubbed the “Amazon of Africa,” saw its stock climb 23% after RBC Capital Markets upgraded the African e-commerce company, citing stronger supply chain operations and easing currency pressures as key growth drivers.
Analyst Brad Erickson raised his rating from Sector Perform to Outperform and lifted the price target from $6.50 to $15.00, signaling more than 50% upside from current levels.
The upgrade followed meetings with Jumia’s CEO and CFO, during which management expressed confidence in building momentum with Chinese suppliers amid stabilizing African currencies and alternatives to U.S. tariff pressures.
“We’ve underappreciated the magnitude of the headwinds the company faced last year due to currency volatility and thus, anything approaching stability from here could allow for further supply expansion, order growth acceleration and upside in the shares,” Erickson said.
Jumia has strengthened its presence in China, hiring additional staff to support supplier partnerships, and its Shenzhen office recently reached capacity due to rapid growth. Management expects strong visibility for continued acceleration through year-end, potentially extending into early 2026, with plans to increase marketing spend after several years of cost rationalization.
RBC projects Jumia could raise its take rate by 50–100 basis points annually over the next three to four years as it gains leverage with Chinese sellers, though these gains are not yet reflected in current estimates.
Operating in 11 African countries, Jumia sees its biggest opportunities in Nigeria, Kenya, Egypt, and Ghana, and anticipates fulfillment costs declining by roughly 10% annually through efficiency improvements.
Jumia Technologies stock price
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