Jumia Technologies AG (JMIA), often referred to as the "Amazon of Africa," saw its stock surge 5.52% in pre-market trading on Tuesday. The significant uptick comes on the heels of a notable upgrade from RBC Capital Markets, signaling renewed confidence in the African e-commerce giant.

RBC Capital Markets has raised its rating on Jumia Technologies from Sector Perform to Outperform, marking a bullish shift in its outlook for the company. In a move that further underscores their optimism, RBC more than doubled its price target for Jumia, elevating it from $6.50 to $15 per share. This substantial increase in the target price represents considerable upside potential from the stock's current trading levels.

The upgrade and raised price target reflect growing confidence in Jumia's business model and its ability to capitalize on the expanding e-commerce market in Africa. Jumia has been working to streamline its operations and improve profitability in recent years, and this vote of confidence from a major financial institution like RBC suggests that these efforts may be bearing fruit. Investors will be closely monitoring Jumia's performance in the coming quarters to see if this positive sentiment translates into improved financial results.