Uxin: Analysts See 138% Upside Potential after Q4 Results


Dec. 4 2020, Updated 10:42 a.m. ET


As of March 14, Uxin (UXIN) was trading with 17.8% month-to-date losses. During this period, NIO (NIO), Tencent Music (TME), and Alibaba (BABA), other Chinese companies (MCHI), lost 37.0%, 1.9%, and 1.5%, respectively. In contrast, JD.com (JD), Baidu (BIDU), and Tencent Holdings (TCEHY) have gone up by 0.6%, 3.2%, and 6.3%, respectively.

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Analysts see 138% upside potential

According to Reuters, three out of four Wall Street analysts covering Uxin recommended a “buy” on its stock as of March 14. The remaining one analyst suggested a “hold.” None of the analysts recommended a “sell” on the company. These four analysts’ consensus 12-month target prices for Uxin were $9.00, reflecting ~137.5% upside potential from its Thursday closing price of $3.79.

Partnership with Alibaba

On December 6, 2018, Uxin announced a partnership with Alibaba’s Taobao. The new partnership allowed Uxin and Taobao to “collaborate in the areas of B2C, and B2B used car transactions, integrated supply chain, and used car loan facilitation.” Soon after this announcement, Uxin on December 12, 2018, said, “it 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 added to investors’ optimism.

What to expect next

This partnership has played an important role in driving Uxin’s stock price rally in the last couple of months. However, the company’s weak first quarter of 2019 revenue outlook might hurt investor sentiments. Also, Uxin’s stock might not be an ideal investment for conservative investors due to its wild price movement or high volatility. Nonetheless, the company still could be seen as an opportunity by many investors with high-risk appetite with expectations of high returns.


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