Ahyung Cho, an analyst from Bank of America Securities, reiterated the Buy rating on Coupang. The associated price target remains the same with $38.00.
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Ahyung Cho’s rating is based on a combination of factors that highlight Coupang’s potential for growth despite recent challenges. The analyst acknowledges the recent data breach affecting 33.7 million accounts, which has raised concerns about regulatory scrutiny and potential consumer backlash. However, Cho believes that the long-term impact on Coupang’s business may not be significant, given the company’s proactive response and ongoing investigations.
Cho also emphasizes the importance of monitoring the regulatory outcomes, especially considering the scale of the breach compared to Coupang’s active customer base. Despite these challenges, the analyst maintains a positive outlook on Coupang’s stock, supported by a price objective of $38.00 USD, which suggests potential upside from the current price. The valuation metrics and consensus earnings per share forecasts further reinforce the Buy rating, indicating confidence in Coupang’s ability to navigate the current situation and achieve growth.
In another report released on November 19, Morgan Stanley also maintained a Buy rating on the stock with a $35.00 price target.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CPNG in relation to earlier this year.