Daiwa analyst Robin Leung sees near-term downside risk to Dada Nexus (DADA) shares amid news that Walmart (WMT) is selling its stake in JD.com (JD). As Walmart is also a key shareholder in Dada Nexus, with a 9% shareholding as of March, Daiwa sees near-term downside risk to Dada’s share price due to the potential overhang from Walmart, the analyst tells investors in a research note. The firm says Dada’s revenue from Walmart accounted for a respective 20.2%, 21.6% and 20.6% of Dada’s revenue for 2021, 2022 and 2023, respectively. It says a weakening relationship between Dada and Walmart would lead to a less competitive merchandise selection and pricing on the JD Now platform as well as lower delivery service revenue at Dada Now. Daiwa has a Hold rating on Dada Nexus with a $2 price target.
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