Why This Analyst Sees 54.2% Upside In Dada Nexus Despite PT Cut?

Morgan Stanley analyst Wei Fang upgraded Dada Nexus Ltd (NASDAQ:DADA) to Overweight from Equal Weight with a price target of $31.60, down from $35, still implying a 54.2% upside.
Fang cited improving operating metrics and a less intense competitive environment behind the recommendation.
Dada Nexus is a platform of local on-demand retail and delivery in China.
Price Action: DADA shares traded higher by 2.98% at $21.21 in the premarket session on the last check Thursday.