Citigroup Issues Dada Nexus Rating Downgrade

Investors received new guidance from Citigroup early Monday as the financial services firm downgraded the rating of Dada Nexus (NASDAQ:DADA) from a 'buy' to a 'sell.' MarketBeat reveals that this change is part of a wider critical reassessment of Dada Nexus by various research outlets.

Analysts Review Dada Nexus

Several research analysts have recently altered their views on Dada Nexus. Notably, The Goldman Sachs Group lowered their price target on the company from $11.60 to $10.10, albeit maintaining a 'buy' rating. In contrast, Morgan Stanley downgraded Dada Nexus from an 'overweight' to an 'equal weight' rating, also slashing the price target from $12.30 to $4.78. New coverage was initiated by CLSA, who set an 'outperform' rating and a price target of $4.60. With these adjustments, the stock now holds an average rating of 'Hold' and consensus target price averaging $8.54, as per analysis from MarketBeat.com.

Market Performance and Shareholder Activity

Following the opening on Monday, Dada Nexus's stock was priced at $1.41. The stock's recent performance shows a fifty-day simple moving average of $3.30 and a 200-day simple moving average of $4.41. Over the last year, shares have seen a low of $1.36 and a high of $15.59. With a market capitalization of $369.44 million and a beta of 1.50, the company's P/E ratio stands at -1.70.

The latest quarterly earnings posted on November 14 showed a break-even EPS of ($0.03), which aligned with consensus estimates. Despite a negative net margin of 14.16% and a negative return on equity of 13.84%, the company generated $396.15 million in revenue, surpassing the anticipated $390.09 million. Analysts project an EPS of -0.11 for the current fiscal year.

Institutional Investment Trends

In recent transactions, institutional investors have shown varying degrees of engagement with Dada Nexus shares. Examples include Franklin Resources Inc. increasing their stake by 8.7%, Vontobel Holding Ltd. by 15.2%, Nuveen Asset Management LLC by 4.0%, and Citigroup Inc. by 69.5%. Overall, 23.88% of the company's stock is held by institutional investors.

About Dada Nexus

Dada Nexus Limited runs a local on-demand retail and delivery platform in China, which includes Dada Now, a local on-demand delivery service, and JDDJ, a retail platform for consumers, retailers, and brands.

Citigroup, Downgrade, DADA