Uxin is up
The broader market sell-off is intensifying as US-China trade uncertainties and concerns over the slowing global economy are badly hurting investors’ sentiments. However, some stocks are still giving investors a reason to celebrate.
China’s largest used car e-commerce platform, Uxin (UXIN), stands among the top companies on this list. As of December 13, Uxin stock had surged 150.3% in the six days since December 4.
Analysts are positive on Uxin
According to the Thomson Reuters, about two out of three Wall Street analysts covering the stock still call it a “buy” as of December 13. The remaining analyst has given it a “hold.” Analysts’ 12-month target price for Uxin is $11.55, reflecting a potential 61.3% upside from its closing price of $7.16 on December 13.
Today at 12:46 PM EST, Uxin was trading with a 6.0% daily gain, extending its December price rally. In comparison, the S&P 500 Index (SPY) and the NASDAQ Composite Index (QQQ) are down 1.5% and 1.4%, respectively, for the day. At the same time, other Chinese companies (FXI) Alibaba (BABA), Baidu (BIDU), and Tencent Holdings (TCEHY) are down 1.6%, 0.5%, and 1.3%, respectively.
Uxin’s recent price rally has been primarily driven by its partnership with Alibaba’s Taobao, which it announced last week. The new partnership will allow Uxin and Taobao to “collaborate in the areas of B2C and B2B used car transactions, integrated supply chain, and used car loan facilitation.”
On December 12, Uxin said that it had “facilitated over 2,000 used car transactions to consumers on the Uxin Taobao Marketplace store during the first 18 hours of Taobao’s Double 12 Shopping Festival,” which increased optimism among investors.