Bank of America Securities analyst Ahyung Cho reiterated a Buy rating on Coupang (CPNG – Research Report) yesterday and set a price target of $30.00.
Ahyung Cho has given his Buy rating due to a combination of factors including Coupang’s expected strong net revenue growth and market share gains. Despite a generally weak consumption environment, Coupang’s net revenue is anticipated to grow by 20% on a constant currency basis, aligning with management’s guidance. This growth is largely driven by significant share gains in key areas such as Rocket Fresh and Eats, as well as other categories like electronic appliances and cosmetics.
Additionally, the Buy rating is supported by Coupang’s solid leadership in the grocery category and its potential for profitability improvement in a competitive market. While there are some concerns about increased expenses affecting profitability, the company’s strategic positioning and market dynamics are expected to contribute positively to its financial performance. The reiterated price objective of $30 reflects confidence in Coupang’s ability to maintain solid top-line growth and improve profitability.
Based on the recent corporate insider activity of 45 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.