Analyst Ahyung Cho of Bank of America Securities reiterated a Buy rating on Coupang (CPNG – Research Report), retaining the price target of $30.00.
Ahyung Cho has given his Buy rating due to a combination of factors that highlight Coupang’s strategic positioning and growth potential in Taiwan’s e-commerce market. The company is targeting key areas such as selection, speed, pricing, and service, where it has a competitive advantage over many of its peers. By outsourcing logistics to third-party companies, Coupang can provide same-day or next-day deliveries across the nation, enhancing its service offering. Furthermore, Coupang’s focus on everyday low pricing and increasing purchase frequency in categories like FMCG and personal care strengthens its market position.
Additionally, Coupang is proactively enhancing the consumer experience by launching new services and expanding its local selection, which was initially reliant on cross-border sourcing from Korea. The introduction of the WOW membership in Taiwan, which took significantly less time than in Korea, and the emphasis on better unit economics through improved sourcing capabilities are also pivotal. These strategic moves, along with the introduction of new consumer experiences such as free returns and convenient refunds, are expected to stimulate growth and maintain Coupang’s competitive edge in the market.
According to TipRanks, Cho is a 2-star analyst with an average return of -3.4% and a 42.86% success rate.