Jiong Shao, an analyst from Barclays, maintained the Buy rating on Coupang (CPNG – Research Report). The associated price target remains the same with $25.00.
Jiong Shao’s rating is based on a comprehensive evaluation of Coupang’s business growth and strategic positioning. The company’s acceleration in acquiring new customers and the corresponding revenue increase throughout the previous year are seen as indicators of a robust underlying business model. Shao recognizes the ‘flywheel effect’ in place, expecting it to generate solid results in the upcoming quarter. With Coupang’s customer growth rates rising significantly each quarter of the previous year, Shao anticipates this momentum to carry forward, bolstering the company’s financial performance.
Furthermore, Coupang’s recent acquisition of Farfetch is expected to provide additional financial insights and growth strategy details in the next earnings report. The anticipation of more disclosures around Farfetch’s financials and its integration into Coupang’s business model adds to the positive outlook. While acknowledging the competitive threat from Chinese cross-border e-commerce players, Shao’s unchanged key forecasts for Coupang’s revenues, gross margins, and EBITDA, along with adjusted tax rate expectations for 2024, underpin the Buy rating for Coupang’s stock.
Shao covers the Consumer Cyclical sector, focusing on stocks such as JD, Alibaba, and Sea. According to TipRanks, Shao has an average return of 2.5% and a 42.76% success rate on recommended stocks.
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Coupang (CPNG) Company Description:
Coupang Inc is an e-commerce company. The company sells apparel, electronics, footwear, food products, furniture, nutritional supplements, and other products.
Read More on CPNG:
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- Alibaba to take on Coupang with $1.1B investment in South Korea, Nikkei says
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