Analyst Ahyung Cho of Bank of America Securities reiterated a Buy rating on Coupang (CPNG – Research Report), boosting the price target to $34.00.
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Ahyung Cho has given his Buy rating due to a combination of factors including Coupang’s strong performance in the e-commerce sector and its promising growth prospects. The company’s sales have shown resilience, particularly in electronic goods, home appliances, and groceries, which have experienced significant growth. Additionally, Coupang’s Eats service is expected to expand its market share in less-penetrated regions outside of Seoul.
Furthermore, Ahyung Cho anticipates that Coupang will benefit from operational efficiencies and additional monetization opportunities in advertising and logistics. The company’s strategic initiatives, such as the US$1 billion share repurchase, are expected to enhance shareholder value. Despite the competitive landscape, Coupang’s unique membership benefits and lower minimum order values position it favorably against industry peers, potentially leading to higher delivery volumes per customer and improved earnings per share.
According to TipRanks, Cho is a 3-star analyst with an average return of 21.5% and a 100.00% success rate.
In another report released on May 27, Morgan Stanley also maintained a Buy rating on the stock with a $32.00 price target.