Dada Nexus Ltd. announced that is planning to offer one-hour delivery to its customers across China. Shares of the China-based on-demand delivery and retail platform provider advanced 3.1% in the pre-market session on Monday.
Dada (DADA) said, “Since the onset of COVID-19, the e-commerce industry in China has grown significantly and an increasing number of consumers prefer to have goods delivered directly to their home. Today, as COVID-19 restrictions are eased and consumers begin to return to normal shopping habits, this preference for on-demand consumption remains unchanged.”
In November, the company reported 3Q revenue of RMB1.3 billion, compared to the consensus estimate of RMB1.29 billion. Dada’s adjusted loss of RMB324 million, however, missed analysts’ expectations of RMB411.3 million. (See DADA stock analysis on TipRanks)
Meanwhile, on Nov. 11, Goldman Sachs analyst Ronald Keung upgraded the stock to Buy from Hold and lifted the price target to $36 (1.4% downside potential) from $28.50.
The analyst also raised his 2021 and 2022 revenue estimates for the company by 7% and 14%, respectively, on expectations of higher growth related to store-to-home and on-demand delivery. The analyst believes that the company would continue to benefit from the sustained online shift in the coming few years.
Like Keung, the rest of the Street also has a bullish outlook on the stock with an analyst consensus of a Strong Buy based on 3 Buys and 1 Hold. The average price target of $39 implies upside potential of about 6.9% to current levels. Shares have risen by about 128.3% since June 5, 2020, when the company listed on NASDAQ.
Related News:
Xpeng’s December Deliveries Surge, Reflect Robust EV Demand
BP & Partners Start Gas Deliveries To Europe; Street Sees 54% Upside
Roku On Cusp Of Deal To Buy Quibi’s Content Catalog – Report
