Jumia's report doesn't alter Stifel view that 'best days' still to come
Stifel analyst Scott Devitt said Jumia reported "mixed" Q2 results, including gross merchandise volume growth of 69% that was "strong" although it was below expectations. Year-over-year revenue growth of 58% was also slightly below his expectations, but Jumia "continued on its gradual path to profitability," said Devitt. Regarding the company's findings from a review of several JForce agents involved in improper sales practices in Nigeria as well as improper orders that were placed through the JForce program, Devitt said the impact from these inappropriate activities is relatively small and "better-than-feared," adding that fraudulent activity in non-developed markets is "something all marketplaces deal with." He still sees Jumia's long-term opportunity as highly attractive and "nothing in today's report changes our view," stated Devitt, who keeps a Buy rating on the stock. However, he trimmed his price target on Jumia shares to $28 from $34.