Analyst Seyon Park of Morgan Stanley maintained a Buy rating on Coupang, boosting the price target to $35.00.
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Seyon Park has given his Buy rating due to a combination of factors, primarily focusing on Coupang’s strategic expansion into Taiwan. The eCommerce market in Taiwan presents a significant growth opportunity, with its current low penetration and the absence of a dominant platform. Park believes that Coupang’s entry could be the catalyst for mass adoption, potentially transforming Taiwan into a US$50 billion market over the next five years, thereby serving as a crucial growth engine for the company.
Additionally, Park draws parallels with Coupang’s experience in Korea, where peak losses were recorded four years after launching. Given the smaller market size and faster progress in Taiwan, he anticipates peak losses by late 2026, with revenues reaching US$2.5 billion. Despite near-term valuation adjustments, Park expects a sharp narrowing of losses starting in 2027, making Coupang’s current trading multiples attractive. Consequently, he has raised the price target to US$35, reinforcing Coupang as a top pick due to its promising medium-term earnings contribution from Taiwan and reduced share price volatility.
In another report released on August 7, Barclays also maintained a Buy rating on the stock with a $36.00 price target.
Based on the recent corporate insider activity of 44 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.