On Wednesday, Jefferies reiterated its Buy rating on Dada Nexus Ltd . (NASDAQ: NASDAQ:DADA) stock with a price target of $2.20. The firm's analysis followed Dada Nexus's second-quarter results, which surpassed consensus expectations in both total revenue and non-GAAP earnings.
During the earnings call, the management team emphasized the continued rapid growth in transacting users and orders for JD (NASDAQ:JD) NOW, citing low market penetration as a driving factor.
The company's collaboration with JD was highlighted as a key element in sustaining JD NOW's momentum. Additionally, the expansion of Dada NOW's coverage of key accounts was noted as part of the company's strategy to capitalize on the local on-demand delivery market.
Jefferies has chosen to maintain its revenue and non-GAAP earnings projections for Dada Nexus for 2024. The firm's endorsement of its stock comes after a thorough review of Dada Nexus's performance and market strategies, which appear to position the company for continued growth in its sector.
Dada Nexus's recent financial achievements and strategic partnerships have garnered positive attention from Jefferies, suggesting confidence in the company's trajectory. As Dada Nexus continues executing its growth strategy, investors and market watchers will likely closely monitor the company's progress.
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