Shares of Jumia Technologies AG (NYSE:JMIA) climbed 8.1% on Tuesday after Craig-Hallum analyst Ryan Sigdahl initiated coverage of the African e-commerce group with a Buy rating and a price target of $18 per share.
In his initiation note, Sigdahl pointed to Jumia’s “decade-plus long growth runway” within Africa’s still underpenetrated e-commerce market, arguing that the company operates a “structurally advantaged business model” that is now moving beyond a turnaround phase and into a period of sustainable growth.
The analyst highlighted management’s multi-year restructuring efforts, which involved pulling out of loss-making geographies, tightening cost controls, improving unit economics, and sharpening the focus on core physical goods within its e-commerce platform.
According to Sigdahl, Jumia’s streamlined product mix, scalable logistics infrastructure, and broad range of payment solutions underpin confidence in management’s longer-term ambitions. These include targets of more than 20% sustainable revenue growth and EBITDA margins exceeding 20% by 2030.
Looking even further ahead, Sigdahl suggested that Jumia could eventually trade in a range of $125 to $250 per share if it manages to achieve regional leadership comparable to large-scale e-commerce players in Latin America and the Asia-Pacific region.