James Lee, an analyst from Mizuho Securities, maintained the Hold rating on Coupang (CPNG – Research Report). The associated price target is $35.00.
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James Lee has given his Hold rating due to a combination of factors affecting Coupang’s financial outlook. The expected depreciation of the Korean Won against the USD has led to a downward revision in revenue expectations for Coupang, with a 3% decrease for the fourth quarter of 2024 and a 2% decrease for the fiscal year 2025. This currency impact also results in a significant reduction in EBITDA estimates, with a 15% decrease for the fourth quarter of 2024 and a 5% decrease for the fiscal year 2025.
Despite these adjustments, Lee maintains the fiscal year 2026 revenue and EBITDA forecasts and the price target at $25. The Hold rating stems from Coupang’s valuation premium compared to its peers, ongoing regulatory uncertainties, and potential headwinds related to Softbank. However, there is a positive outlook on the company’s ability to maintain its leading position in its category.
Based on the recent corporate insider activity of 46 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.