Dada Nexus downgraded to Underperform from Outperform at CLSA

CLSA downgraded Dada Nexus to Underperform from Outperform with a price target of $1.75, down from $4.60, after the company’s internal discovery of potential fraud. The analyst expects subsequent internal clean-ups, which may negatively affect its growth outlook. “Punishment of the share price might be over, but we see high risk to participate from here,” the analyst tells investors in a research note.