Dada Group Joins Forces With Local Retailers to Combat Latest COVID-19 Outbreak
China’s leading online retail platform, Dada Group, is working with retailers in Shijiazhuang, Hebei Province, to provide safe, contactless on-demand delivery services to aid in the fight against the latest coronavirus outbreak.
Supermarkets in Shijiazhuang have been forced to take their operations online as lockdown periods have been imposed by local governments, and Dada Group’s (DADA) on-demand delivery platform, Dada Now, has been delivering daily necessities from supermarkets to residents.
Dada Now delivery people are provided with disinfectant, masks and other prevention equipment, with the introduction of contactless on-demand delivery services leading the Shijiazhuang government to guarantee and recommend Dada Group as one of only 51 necessities suppliers in the province. (See DADA stock analysis on TipRanks)
Keybanc analyst Hans Chung initiated a Buy rating on DADA three weeks ago, setting his price target at $55. This implies upside potential of around 22% from current levels.
Chung believes that DADA stands apart from its competitors with a distinct and differentiated O2O (online-to-offline) model. He also highlighted the company’s strong supply chain and proprietary technology solutions that should create further barriers to entry.
Consensus among analysts is a Strong Buy, with 5 Buys and 1 Hold. The average price target of $44.40 suggests that DADA shares are fully priced at current levels and have limited downside potential over the next 12 months.
DADA receives a Smart Score of 7 out of 10 on TipRanks, which implies that DADA is expected to perform in line with market expectations.
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