Ahyung Cho, an analyst from Bank of America Securities, reiterated the Buy rating on Coupang. The associated price target was raised to $36.00.
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Ahyung Cho has given his Buy rating due to a combination of factors including Coupang’s strong financial performance and growth prospects. The company’s second-quarter results aligned with expectations, showcasing a 19% increase in net revenue in constant currency terms, driven by robust growth from existing and new customers. The product commerce segment showed significant improvement with a gross profit margin reaching 32.6%, and an adjusted EBITDA margin of 9%, indicating enhanced operational efficiency.
Additionally, Coupang’s expansion in Taiwan is progressing well, with a remarkable 54% revenue growth quarter-over-quarter. Although this expansion has led to a larger adjusted EBITDA loss, the management remains optimistic about the trajectory, drawing parallels with the earlier success in Korea. The company’s strategic investments in Taiwan and the integration of Farfetch into its platform are expected to bolster future growth. Despite a revised earnings estimate due to a higher tax rate assumption, the overall outlook remains positive, supporting the Buy rating with a price objective of $36.
According to TipRanks, Cho is a 3-star analyst with an average return of 21.7% and a 90.00% success rate.
In another report released today, Barclays also maintained a Buy rating on the stock with a $36.00 price target.