Uxin Ltd (NASDAQ: UXIN) stock has been on quite a run in the past month, but one Wall Street analyst said Friday the red-hot stock has run too far too fast.

The Analyst

Goldman Sachs analyst Ronald Keung downgraded Uxin from Buy to Neutral and raised his price target for the stock from $9.10 to $9.30.

The Thesis

Uxin's stock is simply fully valued following the recent run, Keung said. The recent run was triggered after the company announced a new strategic partnership with Alibaba Group Holding Ltd (NYSE: BABA) platform TaoBao earlier this month.

Goldman estimates Uxin facilitated more than 2,400 used car sales on Taobao during the recent Double 12 Shopping Festival. Given the early success of the partnership, Goldman has raised its 2018 through 2020 revenue estimates by up to 1 percent and raised its net income forecasts by 2 percent for each year.

“While we believe Uxin remains well positioned in capturing the growth opportunities of China’s online used car market with its integrated online-offline model, and expect the company to turn profitable by 2020E, given that the stock is currently trading at 11X 2020E P/E vs. our China Internet/China Fintech coverage universe average 2020E P/E of 13X/5X, we think risk-reward is fair on a sector-relative basis and await further catalysts/profit turnaround of the business in the medium term,” Keung said in the downgrade note.

Price Action

Uxin stock traded higher by 4.5 percent to $8.17 Friday and is up 83 percent overall in the past month.

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