Morgan Stanley analyst Seyon Park has maintained their bullish stance on CPNG stock, giving a Buy rating on December 1.
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Seyon Park has given his Buy rating due to a combination of factors that suggest Coupang’s resilience despite recent challenges. Although the company faces regulatory scrutiny following a significant data breach affecting millions of users, Park notes that operational disruptions have been minimal. Data from Sensor Tower indicates that the risk of membership cancellations is low, and there are no comparable alternatives in the Korean market that could significantly impact Coupang’s retail operations.
Furthermore, Park has incorporated potential costs related to the breach, including fines and customer compensation, into his financial models. Despite these one-off costs, the valuation remains attractive, with expectations of narrowing losses as the company scales its operations in Taiwan. The revised estimates suggest that Coupang is trading at a reasonable multiple, supporting the Buy rating despite the lowered price target.
According to TipRanks, Park is a 3-star analyst with an average return of 13.1% and a 76.00% success rate.
In another report released on December 1, Bank of America Securities also reiterated a Buy rating on the stock with a $38.00 price target.